Standard & Poor’s raised its issuer credit rating on Muenster, Tex., Independent School District’s unlimited-tax general obligation school building bonds to A from BBB-plus. It cited the district’s strong financial performance trend, as evidenced by very strong reserves and very limited capital needs. The outlook is stable.
At the same time, Standard & Poor’s affirmed its AAA program rating, with a stable outlook, on the district’s parity GO debt.
The program rating assigned to the district’s GO bonds reflects the district’s eligibility for, and participation in, the Texas Permanent School Fund, which provides the security of a permanent fund of assets that can be used to meet debt service on bonds guaranteed by the program.
The agency said the A rating also reflects the district’s stable enrollment, which has led to stable state support of operations and debt service; strong financial reserves, coupled with a trend of increasing reserves; and limited operating and enrollment pressures.
