Standard & Poor's Ratings Services said it raised its underlying rating to A-minus from BBB-minus on San Ysidro School District, Calif.'s general obligation bonds outstanding and raised its SPUR to BBB-plus from BB-plus on the district's certificates of participation outstanding.
Standard & Poor's also assigned its A-minus rating to the district's 2015 GO refunding bonds. The outlook is positive.
"The raised ratings reflect our view of the district's agreement with Manzana Energy Inc., resulting in Manzana Energy dropping the lawsuit with a $12 million jury settlement against the district," said Standard & Poor's credit analyst Bryan Moore. "In addition, the district has improved to Qualified certification from Negative certification, and it has maintained good fund balances during the past several years when projections suggested potential receivership from the state."
The ratings reflect district's: resolution of the pending lawsuits and contingent liability risk; large property tax base and participation in San Diego County's diverse economy; and good available reserves despite multiple years of drawdowns.
The district has approximately $186 million of GO bonds and COPs outstanding.
