Standard & Poor's Ratings Services said it raised its rating on Roxbury Township Board of Education, N.J.'s general obligation bonds one notch to AA from AA-minus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's strong budgetary performance and improving finances.
The rating service also assigned its AA rating and stable outlook to the district's $7 million series 2014 school energy savings improvement refunding bonds.
"We believe the district will likely maintain reserves at current levels over the next few years. We also believe the district's participation in, and access to, a broad and diverse economy stabilizes the rating, particularly while the regional economy slowly recovers. We also expect debt to remain, what we consider, low due to the district's limited capital needs and rapid debt amortization," said Standard & Poor's credit analyst Victor Medeiros. "For these reasons, we do not expect to change the rating within the two-year outlook period."
Officials intend to use bond proceeds to finance energy conservation improvements at school district facilities. The district's full-faith-and-credit-GO pledge secures the bonds. The New Jersey Fund for the Support of Free Public Schools program provides additional bond security.
