Standard & Poor's Ratings Services said it raised its rating on Palmyra-Eagle Area School District, Wis.' general obligation debt to AA-minus from A-plus.
At the same time, Standard & Poor's assigned its AA-minus long-term rating to the district's GO refunding bonds, to be issued in 2014. The outlook is stable.
"The higher rating reflects the strengthening of the district's general fund reserves," said Standard & Poor's credit analyst Carol Hendrickson.
"The rating also reflects our view of the district's very strong general fund reserves," she added, "and its moderate overall net debt burden."
Other factors include its: local economy largely based on the manufacturing and agriculture, and strong income and per capita market value levels.
The district's decreasing enrollment and lack of a formalized fund balance policy partially offset the above strengths.
