Standard & Poor's Ratings Services said it raised its rating on Pewaukee School District, Wis.' outstanding general obligation notes to AA from AA-minus.
The outlook is stable.
"The higher rating reflects sustained growth in general fund reserves and the adoption of a fund balance policy," said Standard & Poor's credit analyst Carol Spain.
"The rating reflects our view of the district's stable-to-growing enrollment, which is tied to per-pupil revenues," she added, "and very strong financial position." Other factors include its: participation in the deep and diverse Milwaukee metropolitan statistical area (MSA) economy; very strong effective buying incomes and extremely strong market value per capita levels; and moderate overall debt burden.
The district's full faith and credit unlimited property tax pledge secures the notes.
The district provides grade pre-K-12 education to a population of 16,813 in Waukesha County in the village of Pewaukee and a portion of the city of Pewaukee. The district is adjacent to Waukesha and approximately 20 miles from downtown Milwaukee.
"The stable outlook reflects our expectation that the district will maintain very strong reserves over the two-year outlook horizon and will continue to benefit from participation in the Milwaukee MSA economy," said Spain. The outlook also reflects the district's good management practices and stable enrollment trend.
Although it does not expect to change the rating in the next two years, it could consider lowering it if there is a significant deterioration in the fund balance. Conversely, significant improvement in the district's economic indicators and reserves could lead to an upgrade, but it does not expect growth of this magnitude within the outlook period.
