Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to A-plus from A on Salinas Union High School District, Calif.'s and the Salinas Union High School District Middle School Improvement District's general obligation bonds.
The outlook is stable.
"The rating action reflects our view of the district's recent positive growth in average daily attendance, a key determinant of state aid, and its effective management of state cuts, including budget actions that have enabled it to sustain a very strong financial position," said Standard & Poor's credit analyst Chris Morgan.
The rating on the improvement district's GO bonds reflects: the pledge of revenue from unlimited ad valorem taxes on taxable property within the improvement district, which partially overlaps with the larger school district's overall taxing area; and the general credit characteristics of Salinas Union High School District.
The stable outlook reflects the operating district's very strong financial position and management's willingness to adjust expenditures to maintain stable financial operations during an adverse state funding environment.