Standard & Poor's Ratings Services said it has raised its rating on Syracuse Industrial Development Agency, N.Y.'s school facility revenue bonds outstanding to AA from AA-minus.
The upgrade is based on the intercept structure and the improved credit profile of New York (AA-plus GO rating). The outlook is stable.
"The rating reflects what we view as the strength of the statutory direct-pay intercept of state aid for education by the New York state comptroller, which is structured to be sent directly to the bond trustee in advance of debt service due dates to pay debt service," said Standard & Poor's credit analyst Eden Perry.
A established funding structure that allows for the timely intercept of state aid and payment of principal and interest on the bonds outstanding even in the event that the school district fails to appropriate funds; the state's consistent and strong oversight of school districts with a long history of state support, especially in distressed situations; and strong maximum annual debt service coverage (MADS).
The stable outlook reflects the current outlook on the state of New York's GO debt and the strength of state appropriations for New York education. It would expect the rating to change if the rating on New York State's GO debt changes.
The stable outlook reflects the current outlook on the state of New York's GO debt and the strength of state appropriations for New York education. It would expect the rating to change if the rating on New York State's GO debt changes.
