Standard & Poor’s upgraded the Acton-Agua Dulce Unified School District’s issuer credit rating to AA-minus from BBB-plus.
“The raised rating reflects what we consider to be a substantial improvement in the district’s financial position to a very strong level in fiscal 2008, as well as the incorporation of new information regarding the district’s taxing area — including what we consider to be a very strong median household effective buying income,” said Standard & Poor’s analyst Chris Morgan.
The district has increased its general fund balance to 24.1% at the end of fiscal 2008 from just 3% at the end of fiscal 2005, and the debt burden is low at 2.5% of market value, Morgan said.
Standard & Poor’s said declining enrollments and a lack of formal reserve policies limited the district’s credit quality.
Acton-Agua Dulce, which is 45 miles northeast of Los Angeles, plans to sell $13 million of general obligation bonds next month via a negotiated deal underwritten by Stone & Youngberg LLC. The debt was approved by voters on Nov. 4.
