Camino Union Elementary School District, CA Series 2016 General Obligation Bonds Assigned 'A+' Rating
NEW YORK (S&P Global Ratings) Sept. 30, 2016--S&P Global Ratings assigned its 'A+' long-term rating to Camino Union Elementary School District, Calif.'s general obligation bonds (GO), Election of 2016, series 2016. The outlook is stable. "We view the district's strong wealth and income levels as a key credit strength," said S&P Global Ratings credit analyst Michael Stock. The rating reflects our opinion of the district's:
- Strong reserves with an audited fiscal 2015 available fund balance equal to 12.4% of expenditures,
- Strong wealth and income factors, and
- Low net direct debt on a per capita basis.
What we consider to be the district's lack of financial flexibility and low nominal amounts in the general fund offset these strengths. Unlimited ad valorem taxes levied on taxable property in the district secure the GO bonds. The El Dorado 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 stable outlook reflects our view that the district will likely maintain its strong general fund reserves. Due to the district's notional amounts held in its general funds, we do not expect to change the rating during the outlook's two-year period. Should the district's local economy diversify and improve income levels to what we consider very strong and the district consistently maintain what we consider very strong available fund balances with higher balances, we could raise the rating. Conversely, we could lower the ratings if the district has a negative trend in operations, resulting in a significant drawdown on reserves, to a level below the state-required minimum. RELATED RESEARCH
- U.S. State And Local Government Credit Conditions Forecast, July 27, 2016
- Incorporating GASB 67 And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's U.S. Local Government GO Criteria, Sept. 2, 2015
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. 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 the S&P Global Ratings' public website 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@spglobal.com |
| Secondary Contact: | Benjamin P Geare, San Francisco (415) 371-5047; benjamin.geare@spglobal.com |
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