Bangkok--2 Mar--Standard & Poor's
Standard & Poor's Ratings Services raised its school district issuer credit rating (ICR) to 'A+' from 'A' on Sweetwater County School District No. 2, Wyo. In addition, Standard & Poor's assigned its 'A+' school district ICR and its 'AAA' long-term rating to the district's series 2009 general obligation (GO) refunding bonds. Finally, Standard & Poor's affirmed its 'AAA' long-term rating on existing district debt secured by the Wyoming School Bond Guarantee Program. The outlook is stable.
"The raised rating is based on the district's good financial performance with good reserves, as well as an increase in student numbers, which drives state funding," said Standard & Poor's credit analyst Lisa Schroeer. "The 'AAA' enhanced rating on the district's 2009 GO refunding bonds reflects the district's participation in the guarantee program."
The district's financial position is strong, with a $3 million unreserved fund balance, or 9.8% of expenditures, at the end of fiscal 2008. The district did spend down some reserve money on one-time expenditures including instructional technology. For fiscal 2009, the district anticipates basically breaking even, and management indicated that it hopes to build its reserves to 15% over time.
The district's outstanding GO debt totals about $9 million after this issuance. Debt ratios are low at $670 per capita, and less than 1% of property market value. Principal amortization is rapid, with final maturity on all the district's debt occurring within 10 years. Management expects the district's capital needs to be primarily funded by the state program. The district does not expect to issue additional debt in the near future.
The district, with a population of about 14,000, encompasses the southern and western half of Sweetwater County in southwestern Wyoming.
Complete ratings information is available to 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; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Lisa Schroeer, San Francisco (1) 415-371-5006
Paul Jasin, Dallas (1) 214-871-1424
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]