Ceres Unified School District, CA's 2015 General Obligation Refunding Bonds Rated 'A+', Other Ratings Affirmed
NEW YORK (Standard & Poor's) Dec. 17, 2014--Standard & Poor's Ratings Services assigned its 'A+' long-term rating to Ceres Unified School District, Calif.'s series 2015 general obligation (GO) refunding bonds. At the same time, Standard & Poor's affirmed its 'A+' long-term and underlying (SPUR) ratings on the district's existing GO bonds, and its 'A' underlying (SPUR) on the district's existing certificates of participation (COPs). The outlook is stable. "In our opinion, the district has good financial performance, which has led to the maintenance of a very strong fund balance," said Standard & Poor's credit analyst Michael Stock. The ratings reflect also our view of the district's:
- Good income indicators on a median household basis, albeit adequate per capita; and
- Good management policies.
These strengths are partially offset, however, by our view of the district's Central Valley adequate economic base. Unlimited ad valorem taxes levied on taxable property within the district secure the bonds. The county board of supervisors has the power and obligation to levy these taxes at the district's request for the bonds' repayment. The county is required to deposit such taxes, when collected, into the bonds' debt service fund. The COPs represent an interest in lease payments made by the district, as lessee, to the Ceres Unified Schools Public Financing Corp., as lessor, for use and possession of the leased asset. We understand that proceeds from the series 2015 GO bonds will be used to refund a portion of the district's series 2008 GO bonds. The stable outlook on the GO and appropriated debt reflects our belief that the district will continue to maintain strong reserve levels with stabilized ADA. The outlook also recognizes management's efforts to manage expenditures. We do not currently anticipate a rating change during the two-year outlook period, but a substantial drawdown of reserves to balance future operations below levels we would consider strong could lead us to lower the ratings. We do not expect to raise the ratings during the two-year outlook period. RELATED CRITERIA AND RESEARCH Related Criteria
- USPF Criteria: GO Debt, Oct. 12, 2006
- USPF Criteria: Appropriation-Backed Obligations, June 13, 2007
Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.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.
| Primary Credit Analyst: | Michael Z Stock, New York (1) 212-438-2611; michael.stock@standardandpoors.com |
| Secondary Contact: | Daniel J Zuccarello, New York (1) 212-438-7414; daniel.zuccarello@standardandpoors.com |
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