Standard & Poor's Ratings Services said it has raised its school issuer credit rating on Point Pleasant Beach Borough Board of Education, N.J.'s outstanding general obligation bonds to AA-minus from A-plus.
The outlook is stable.
"The upgrade is based on the board's recent history of strong financial performance resulting in strong reserves," said Standard & Poor's credit analyst Lindsay Wilhelm.
The school ICR reflects the district's general creditworthiness, including its: established tourism-based local economy with good access to the greater New York City metropolitan statistical area; very strong income and extremely strong wealth levels; strong financial position when total general fund balance is considered; and low overall net debt burden as a percent of market value, coupled with limited additional capital needs.
The borough's high per capita debt burden partially offsets these strengths.
The board's full-faith-and-credit GO pledge secures the bonds. In addition, the New Jersey Fund for the Support of Free Public Schools program provides additional security toward repayment.
The stable outlook reflects Standard & Poor's opinion of the board's mature, tourism-based local economy with extremely strong wealth per capita. The board's reliance on ad valorem taxes, a stable revenue source, contributes to its stable financial performance and strong reserve levels and provides additional rating stability. The board will likely maintain its strong financial position and, therefore, do not expect to change the rating over the two-year outlook horizon.
