Standard & Poor's Ratings Services said it raised its underlying rating on Rio Vista Independent School District, Texas' existing general obligation to A-minus from BBB-plus.
The outlook is positive.
"The upgrade reflects what we view as continued improvement in the district's financial position, resulting in very strong general fund balance at the end of fiscal 2014," said Standard & Poor's credit analyst Ann Richardson.
The positive outlook reflects the expectation that management will demonstrate its ability to continue to build its reserves, and, once its goal of three months of operating reserves is met, will be able to maintain that level despite enrollment and assessed value (AV) declines.
The outlook also reflects the opinion that management will continue to employ and adhere to the policies and practices it has set forth to maintain very strong reserve levels.
