Moody's Investors Service said it upgraded the rating on Yavapai County Community College District, Ariz.'s $11 million of rated revenue-backed debt to A1 from A2.
It affirmed the rating on the district's outstanding general obligation debt at Aa2.
The outlook on all rated debt is stable.
The upgrade of the revenue bond rating to A1 reflects YCCC's multi-year trend of strong operating performance, driven by conservative expense management. Due to very healthy cash flow, the district is able to fund the majority of its ongoing capital renewal through operating surpluses.
YCCC receives the vast majority of its operating revenue from property taxes, reducing its exposure to more volatile student charges and supporting credit stability. Fiscal 2015 will result in continued strong operating performance, though reserves will decline due to non-recurring capital expenses. Reserve growth will resume in fiscal 2016.
