Standard & Poor’s raised its underlying rating to A-minus from BBB-plus on Compton Community College District, Calif.’s outstanding general obligation bonds and assigned its A-minus rating to the district’s series 2009B GO bonds. The outlook is stable.
“The raised rating reflects our view of the district’s reversal of an enrollment downturn and current stabilization of its financial position,” said credit analyst Matthew Reining.
In June 2005, the district’s accrediting body revoked the college’s accreditation, and, as a result, the district’s enrollment and finances suffered. The district then signed a memorandum of understanding with El Camino Community College District, under which the Compton campus became an education center of the El Camino district.
“While we believe challenges remain for the district, the district’s fiscal 2007 and 2008 financial results have led to improved reserve levels, allowing the district to generate modest surpluses during a period of reduced revenues and expenditures in the general fund as it is undergoing reorganization.”