Standard & Poor's Ratings Services said it raised its underlying rating on New Providence Board of Education, N.J., to AA-plus from AA.
At the same time, Standard & Poor's assigned its AA-plus long-term rating and issuer credit rating to the district's 2014 refunding general obligation school bonds. The outlook on all the ratings is stable.
"The higher SPUR reflects consistently good performances improving the general fund balance to strong levels despite the economic downturn," said Standard & Poor's credit analyst Timothy Barrett.
"The AA-plus rating also reflects the district's standard financial management policy and low debt burden," he added.
Other factors include its: mature, affluent, and primarily residential area with excellent access to the diverse New York City-Northern New Jersey metropolitan statistical area economies; and substantial, stable, and diverse tax base.
The district's outstanding full faith and credit GO pledge secures the series 2014 bonds. The New Jersey Fund for the Support of Free Public Schools provides additional support. Officials plan to advance its series 2006 GO bonds for a current net present value of $300,000.
"The stable outlook reflects the district's participation in the diverse New York City MSA and large, affluent tax base," added Barrett.
Further stability is supported by the district conservative budgeting practices and improved fiscal performances. The agency expects the district will maintain or continue to improve its general fund balances. In addition, given the district's limited capital needs, it expects the debt burden will remain low.
Therefore it does not expect to change the rating in the outlook period. On the other hand, should the general fund balance see declines to levels no longer consider commensurate with the rating, S&P could lower the rating.
