Bangkok--21 Jun--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' long-term rating to San Diego Community College District, Calif.'s election of 2002 series 2011 general obligation (GO) bonds, election of 2006 series 2011 GO bonds, and series 2011 GO refunding bonds. In addition, Standard & Poor's affirmed its AA+ long-term rating and underlying rating (SPUR) on the district's previously issued GO bonds. The outlook on all ratings is stable.
"The 'AA+' ratings reflect such factors as the district's location within the deep and diverse San Diego metropolitan economy, willingness to reduce expenditures, and strong-to-very-strong available general fund balances," said Standard & Poor's credit analyst Chris Morgan.
We understand that the proceeds of the two "new money" series will fund capital upgrades and new construction. Management reports that the series 2011 refunding bonds will refund about 37% of the district's election of 2002 series 2003A GO bonds.
The stable outlook reflects our view that the district will continue to effectively manage the challenge of maintaining balanced operations while contending with stagnant or declining state funding and strong demand for its services. Moreover, we believe that its very strong financial position allows it to time its responses to unexpected costs or revenue disruptions during our two-year outlook horizon.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.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:
Edward Sweeney, New York (1) 212-438-6634,
[email protected]
Analyst Contacts:
Chris Morgan, San Francisco (1) 415-371-5032
Kaitlyn Connors, San Francisco 415-371-5033