Port Allegany School District, Pa., 2010s Raised to A-Plus by S&P

Standard & Poor's Ratings Services said it raised its school issuer credit and underlying ratings on Port Allegany School District, Pa.'s series 2010 Assured Guaranty Corp.-insured general obligation bonds by one notch to A-plus from A.

The outlook is stable.

"This action is based on our view of the district's consistently strong financial performance, which has led to accumulation of very strong general fund reserves, despite the heavy reliance on state aid revenues," said Standard & Poor's credit analyst Danielle L. Leonardis.

The rating also reflects Standard & Poor's view of the district's: good income; and very strong financial reserves.

Offsetting these strengths is Standard & Poor's view of the district's: limited local economy coupled with low wealth, and moderately high overall net debt burden measured as a percentage of market value.

"The stable outlook reflects a stable, yet limited, area economy. The district's strong reserves and conservative budgeting practices lend stability to the rating," Leonardis said. "As such, we do not expect to change the rating within the two-year outlook period. However, if the district makes significant use of reserves to bridge future rising pension costs, we could lower the rating."

Located in north-central Pennsylvania, Port Allegany School District serves an estimated population of 5,693 in McKean and Potter counties.

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