Bangkok--28 Sep--Standard & Poor's
Standard & Poor's Ratings Services raised its school district issuer credit rating (ICR) to 'A+' from 'A' on King County School District No. 412 (Shoreline), Wash. The raised rating reflects the district's improved financial performance as a result of management cost adjustments and strong voter support for levy measures. In addition, Standard & Poor's raised its long-term rating and underlying rating (SPUR) on the district's outstanding general obligation (GO) bonds to 'A+' from 'A'. The outlook is stable.
Finally, Standard & Poor's assigned its 'A+' ICR and 'AA+' enhanced rating to the district's series 2010 unlimited tax GO and refunding bonds. The 'AA+' enhanced rating reflects the district's eligibility and participation in the Washington State School Bond Guarantee Program.
The ratings also reflect the district's:
Strong wealth and income indicators supported by its central location within the Seattle-Bellevue-Everett economy;
Diverse, residential property tax base; and
Moderate overall debt levels of 3.2% of assessed value (AV).
An offsetting rating factor, in our opinion, is a declining enrollment trend.
"After a period of negative unreserved general fund balances, the district has been able to improve its financial performance beginning in fiscal 2008. The financial recovery follows the new management's actions to adjust staffing levels given declining enrollment, the closure of two elementary schools, and other program reductions and adjustments," notes credit analyst Bea Chiem.
The bonds are secured by an unlimited ad valorem property tax pledge. The new money bonds are being issued from the district's 2010 authorization for the improvement of the district's Shorecrest and Shorewood high schools. We understand that the refunding bonds will refund the district's series 2002 unlimited-tax general obligation bonds for a minimum net present value savings of roughly 4%.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: State Credit Enhancement Programs, Nov. 13, 2008
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Bea Chiem, San Francisco (1) 415-371-5070
Lisa Schroeer, Charlottesville (1) 434-220-0892