Bangkok--13 Mar--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA-' issuer credit rating (ICR), with a stable outlook, to Denver City and County School District No. 1, Colo.'s general obligation (GO) bonds series 2009A, and affirmed its 'AA-' ICR on the district outstanding GO bonds. Standard & Poor's also affirmed its 'A+' underlying rating (SPUR) on the district's certificates of participation (COPs).
"The rating reflects a broad economic base that serves as a regional trade center, and good general fund balances and financial management practices," said Standard & Poor's credit analyst Misty Newland. "It also reflects low overall net debt burden as a percent of estimated market value, reflecting the district's sizable tax base."
An offsetting weakness includes a state funding formula that limits the school district's revenue raising ability, combined with a pending state budget deficit and competition for enrollment from the district's charter school.
At the same time, Standard & Poor's also affirmed its 'AA-' state enhanced rating and underlying rating (SPUR), with a stable outlook, on the district's GO bonds, based on the Colorado state aid withholding program. The state enhanced rating reflects the state aid withholding provision created under State of Colorado Revised Statutes, Section 22-41-110.
The bonds are general obligations of the district with an unlimited ad valorem tax pledge. The COPs are payable from a pledge of lease revenues, under separate lease agreements, subject to annual appropriation by the school district.
Denver City and County School District No. 1 covers 155 square miles and is coterminous with the city and county of Denver. The district estimates its population at about 596,582. Denver's diverse economy serves as a regional trade, finance, and employment center for the Rocky Mountain region.
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:
Misty Newland, San Francisco (1) 415-371-5073
Chris Morgan, San Francisco (1) 415-371-5032