Moody's Investors Service said it has upgraded to Aa2 from Aa3 the rating on Placer Union High School District, Calif.'s election of 1999 general obligation bonds, Series A.
The bonds are secured by the district's unlimited property tax pledge.
The upgrade to Aa2 reflects the district's strong financial performance resulting in above average reserve and cash levels. The Aa2 rating also incorporates the district's sizeable, growing tax base, above average socioeconomic profile, and manageable debt levels.
The GO rating also reflects the strength of the voter-approved, unlimited property tax pledge securing the bonds and the well-established levy and collection history for the debt service levy.
This supports the credit quality of these bonds, somewhat offsetting the risk of any future financial weakness. The county rather than the district levies, collects, and disburses the district's property taxes, including the portion constitutionally restricted to debt service on general obligation bonds.
