NEW YORK - Standard & Poor's Ratings Services said it lowered its underlying rating (SPUR) and issuer credit rating (ICR) to A-plus from AA-minus on Weatherford Independent School District, Texas' existing general obligation bonds.
At the same time, Standard & Poor's affirmed its AAA program rating on the district's outstanding general obligation bonds. In addition, Standard & Poor's assigned its AAA enhanced rating and A-plus ICR to the district's series 2010 unlimited tax refunding bonds. The outlook is stable.
"The lowered rating reflects a $13.5 million reduction in the district's unreserved general fund in fiscal 2009 for renovations to its football stadium. This draw down reduced the district's general fund balance to what we consider only adequate levels," said Standard & Poor's credit analyst Sarah Smaardyk. "Further weakening the rating is our view of the district's moderate overall net debt burden, coupled with below-average amortization."
Officials plan to refund the existing bonds to reduce its interest and sinking tax rate by 13 cents.
Weatherford Independent School District encompasses an area of 254 square miles, and includes the City of Weatherford, just 26 miles west of Fort Worth, Texas. The district has seven elementary schools, two middle schools, one intermediate school, and one high school.
