Standard & Poor's Ratings Services said it raised its school issuer credit rating on Valley View Independent School District (Cooke County), Texas' general obligation debt one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's ability to maintain very strong reserves during a challenging period of state funding reductions and slow economic growth.
At the same time, the rating service assigned its AAA program rating and A-plus ICR and stable outlook to the district's $7.37 million series 2014 unlimited-tax GO school building bonds.
In addition, Standard & Poor's affirmed its AAA program rating, with a stable outlook, on the district's existing GO debt.
"We believe that over the next two years, management will likely maintain, what we view as, its strong fund balance. In addition, while assessed value is moderately concentrated, we believe assessed value will likely demonstrate stability," said Standard & Poor's credit analyst Jim Tchou. "Conversely, although unlikely, we could lower the rating if management were unable to maintain the district's strong finances, coupled with a severe assessed value deterioration."
