Standard & Poor's Ratings Services said it raised its underlying rating for credit program on Portland Public Schools, Mich.'s general obligation debt one notch to A from A-minus, reflecting positive recent and projected budgetary performance.
At the same time, Standard & Poor's assigned its A underlying rating for credit program to Portland Public Schools' series 2015 unlimited-tax GO refunding bonds. It also assigned its AA-minus long-term rating to the series 2015 GO bonds, reflecting their qualification for participation in the Michigan school bond loan fund program. The outlook on all ratings is stable.
"The upgrade reflects our view of the district's recent general fund surplus, increasing reserves to a level we consider strong, and projected surpluses for the next two fiscal years," said Standard & Poor's credit analyst Carol Spain. "Stable enrollment and labor contracts effective for the next two fiscal years support our view that the district will be able to maintain its strong financial position."
