Bangkok--13 Jan--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA-' program rating and 'AA-' issuer credit rating (ICR), and stable outlook, to Garfield County School District No. Re-2, Colo.'s series 2009 general obligation bonds (GO).
The 'AA-' program rating reflects our view of the state aid withholding provision created under the State of Colorado Revised Statutes, Section 22-41-110. Under this provision, if the school district indicates it will not make full payment on the bonds, the state treasurer will forward the amount necessary in immediately available funds to the paying agent to be applied only to debt service.
The ICR reflects Standard & Poor's opinion of Garfield County School District No. Re-2's general credit characteristics, including the district's: increasing enrollment due in part to the relative affordability of the district compared with neighboring communities; good wealth and income indicators; and strong financial performance with very strong reserves.
These strengths are tempered by the district's tax base concentration in the oil and gas industries with the leading two taxpayers, both of which are in the natural gas business, accounting for 57.1% of the tax base.
"The stable outlook on the program rating reflects Standard & Poor's view of the outlook on the Colorado State Aid Intercept Program," said Standard & Poor's credit analyst Timothy Barrett. "The stable outlook on the ICR reflects our expectation that the district will be able to accommodate expanding enrollment pressures while maintaining its good financial position and manageable debt burden," Mr. Barrett added.
Due in part to the district's goal to maintain at least $10 million in general fund reserves, we assume the district will maintain its strong financial position.
The district's full faith and credit GO pledge secures the bonds. This issuance represents the final phase of a 2006 authorization to finance a new middle school, a new elementary school, and renovations to existing facilities.
Garfield County School District No. Re-2 (estimated population: 27,500) is in the central Rocky Mountains and encompasses the communities of Rifle, New Castle, and Silt, Colo.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, 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; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Contact:
Edward Sweeney, New York (1) 212-438-6643,
[email protected]
Analyst Contacts:
Timothy Barrett, New York (1) 212-438-6327
Misty Newland, San Francisco (1) 415-371-5073
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]