Standard & Poor's Ratings Services said it raised its underlying rating to AA from AA-minus on San Jose-Evergreen Community College District, Calif.'s general obligation bonds outstanding and assigned its AA rating to the district's series 2014A and 2014B GO refunding bonds, series 2014C (election of 2004) GO bonds, and series 2014C (election of 2010) GO bonds.
The outlook is stable.
"The raised rating reflects our view the district's improved financial performance and reserve levels," said Standard & Poor's credit analyst Misty Newland.
The ratings reflect: the district's location in the heart of Silicon Valley and access to a broad and diverse area economy anchored by a strong technology presence; the district's maintenance of strong reserves; the inherent operational flexibility of community colleges given their ability to control class sections and curriculum offerings, an operational feature not shared by K-12 districts; and the district's moderate overall debt burden.
