NEW YORK - Fitch Ratings said it has upgraded Wayne County Community College District, Mich.'s $8,325,000 bonds, series 1999 outstanding limited tax general obligation (LTGO) to A-plus from A.
Fitch also said it assigned an implied A-plus rating to the district’s unlimited tax GOs.
The rating outlook is stable.
The upgrade recognizes the district's strong budgetary and fiscal management practices resulting in a trend of positive operations and an increasingly strong fund balance position that provides financial flexibility to meet ongoing spending pressures amidst a challenged local economy.
The district's aggregate debt levels are moderate, primarily reflecting overlapping debt. Amortization is above average with the district's limited direct debt maturing in 2019. With cost reductions and conservative budgeting, the district is expected to fund its capital program and plant maintenance through its operating budget and no further district debt is anticipated.
The local area economy has weakened considerably during the recent economic downturn, as evidenced by high unemployment rates, a contracting tax base, population losses, and below-average income levels, but recently has shown signs of stabilization.
