Standard & Poor's Ratings Services said it raised its rating on Southern Huntingdon County School District, Pa.'s general obligation bonds to A-plus from A.
The outlook is stable.
"The raised rating reflects our opinion of the district's consistently strong financial performance, and our expectation of its maintenance of very strong fund balance levels, aided by proactive management," said Standard & Poor's credit analyst Linda Yip.
The district's full-faith-and-credit GO pledge secures the bonds. The district's participation in the Pennsylvania State Aid Intercept Program provides additional bond security.
The stable outlook reflects the opinion that the district will likely maintain its very strong finances, due to its conservative budgeting practices.
A stable local economy, the lack of additional debt plans, and good management provide further rating stability.
The limited local economy, while stable, will continue to constrain the rating. Therefore, the agency does not expect to change the rating during the two-year outlook period.
However, it could lower the rating if financial performance were to deteriorate, leading to a significant reserve reduction.
