Standard & Poor's Ratings Services said it raised its rating on Paramus Borough Board of Education, N.J.'s series 2012 general obligation refunding bonds one notch to AA-plus from AA.
The outlook is stable.
This action reflects the ratings service's view of the school district's very strong reserves following several years of strong financial performance.
"Given recent positive financial trends and the expectation that this pattern will continue, we do not see downward rating pressure within the two-year outlook period," said Standard & Poor's credit analyst Steve Tencer. "Although in our view unlikely during the outlook horizon, should reserves show significant growth, the potential exists for further upward rating movement. Upward movement of the rating would also likely be consistent with more formalized, well-embedded financial policies that could also affect our view on management."
The school district is coterminous with the Borough of Paramus, occupying 10.5 square miles in Bergen County and serving an estimated 26,700 residents.
