Standard & Poor's Ratings Services said it raised its rating on North Schuylkill School District, Pa.'s general obligation debt one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's recent history of its adding reserves despite a limited local economy and limited taxing flexibility.
At the same time, the rating service assigned its A-plus rating and stable outlook to the district's $10 million series 2014 GO bonds.
"We believe the local economy's limited nature and the district's reliance on state aid somewhat constrain the rating," said Standard & Poor's credit analyst Linda Yip. "If finances were to deteriorate significantly, however, we could lower the rating. We do not expect to change the rating further within the stable outlook's two-year period."
The district' full-faith-and-credit pledge secures the bonds. The Pennsylvania State Aid Intercept program provides additional bond security. Officials intend to use bond proceeds to finance capital projects.
