Standard & Poor's Ratings Services said it raised its school issuer credit rating on Perry Township Metropolitan School District, Ind.'s general obligation debt one notch to A-plus from A.

The outlook is stable.

The upgrade reflects the rating service's assessment of the district's stabilizing finances and ability to maintain, what Standard & Poor's considers, good cash reserves.

At the same time, Standard & Poor's assigned its AA-plus program rating and A-plus ICR and stable outlook to Perry Township Multischool Building Corp. of 1996, Ind.'s series 2012 unlimited ad valorem property tax first-mortgage bonds and series 2012 ad valorem property tax first-mortgage refunding bonds.

The rating service also affirmed its AA-plus program rating, with a stable outlook, on the school corporation's existing debt. The program rating reflects the district's participation in the Indiana State Aid Intercept program. The strength and availability of state aid to intercept program participants support program credit characteristics.

"We do not expect to change the rating over the outlook's two-year period because we expect the district to adhere to its informal general fund reserve policy and maintain at least $3.5 million in the rainy day fund," said Standard & Poor's credit analyst Jeffrey Devine. "If cash reserves were to decrease below these measures, however, the rating could experience pressure."

The ICR also reflects Standard & Poor's opinion of the district's: participation in the deep and diverse Indianapolis metropolitan area economy; growing enrollment, a key component to the state aid funding formula; and electorate support, reflected by a recently passed operating referendum that provides additional funding support.

The rating service believes what it considers the district's adequate, but below-average, wealth and moderately high debt as a percent of estimated market value somewhat limit the rating.

The stable outlook on the ICR reflects Standard & Poor's assessment of the steps management has taken toward improving its financial position and Standard & Poor's expectation that management will likely continue to make these adjustments to generate balanced results. The district's participation in the Indianapolis metropolitan area economy and growing enrollment further support the stable outlook.

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