Bangkok--7 Sep--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'AA' from 'AA-' on San Mateo Union High School District, Calif.'s general obligation (GO) debt. At the same time, Standard & Poor's assigned its 'AA' rating to the district's series 2009A and 2009B election of 2006 GO bonds. Standard & Poor's also assigned its 'SP-1+' short-term rating to the district's 2009 GO bond anticipation notes (BANs). The rating outlook is now stable. The outlook on all long-term ratings is stable.
The upgrade reflects the district's improved fund balance levels and what we view as more robust financial practices and procedures. The rating also reflects, in our opinion, the district's diverse tax base in the San Francisco Bay Area; strong demographic indicators characterized by extremely strong wealth and very strong income; and the "basic aid" status that provides revenues significantly above the state per-pupil funding rate and somewhat insulates it from state-funding variability.
"The stable outlook reflects our expectation that the district will maintain a good financial position in its general fund," said Standard & Poor's credit analyst Hilary Sutton. "The outlook also reflects our assessment of the ongoing financial flexibility that the basic-aid status provides," said Ms. Sutton.
Unlimited ad valorem taxes levied on taxable property within the district secure the GO bonds. Securing the 2009 BANs are proceeds of the GO bonds, BANs, and other obligations that the district could subsequently issue and are lawfully available to pay the 2009 BANs. After the sale of the 2009 GO bonds, we expect the district to have $165.3 million in remaining GO bond authorization under its 2006 authorization.
The district serves approximately 220,000 residents in San Mateo, Foster City, Hillsborough, Burlingame, Millbrae, and San Bruno. District median household and per capita effective buying incomes are very strong, in our view, at 156% and 172%, respectively, of the national average.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Short-Term Debt," June 15, 2007
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:
Hilary A Sutton, New York 212-438-7093
Sussan Corson, New York (1) 212-438-2014
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]