San Francisco Unified School District, CA GO Bond Outlook Revised To Positive On Formal OPEB Funding Plan

Stocks and Financial Services Press Releases Wednesday March 15, 2017 08:58
SAN FRANCISCO--15 Mar--S&P Global Ratings

SAN FRANCISCO (S&P Global Ratings) March 14, 2017--S&P Global Ratings revised its outlook to positive from stable and affirmed its 'AA-' long-term rating on San Francisco Unified School District, Calif.'s outstanding general obligation (GO) bonds. At the same time, S&P Global Ratings assigned its 'AA-' long-term rating to the district's election of 2016, series A GO bonds and 2017 GO refunding bonds.

"The revised outlook reflects our view of the district's sustained strengthening of available reserves, virtually stable enrollment trend despite rising housing costs, and progress in its efforts to address its other postemployment benefits, or OPEBs, liability with its proposal to create an irrevocable trust for its OPEB," said S&P Global Ratings credit analyst Benjamin Geare.

"The outlook revision also takes into account the change in our view of the district's financial management policies and practices." The rating further reflects our view of the district's: Underlying economic base that is central to the very large and diverse San Francisco Bay Area;Very strong to extremely strong wealth and income indicators and robust employment growth in its service area; andMultiple revenue streams, which is a situation that is not common among other districts in the state, reflecting a pattern of strong voter support.

The positive outlook reflects our opinion that there is a one-in-three chance that we could raise the rating within our two-year outlook horizon.

If the district is able to maintain available reserves near the 2016 level relative to expenditures and move forward with a more formal plan to fund its OPEB liability, including establishing an irrevocable trust and committing to a funding plan, we could raise the rating.

Alternately, we could also raise our rating if the district secures additional sources of revenue flexibility, resulting in a significant reduction to its reliance on state funding, by, for example, achieving and maintaining basic-aid status. However, if the district spends down balances as shown in its forecast to levels we consider adequate to good, we could revise the outlook back to stable.

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 atwww.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
.

Latest Press Release

Photo Release: EXIM Thailand Visits Xayaburi Hydroelectric Power Project

Mr. Nopporn Thepsithar (fifth left), Chairman of the Board of Executive Directors, Export-Import Bank of Thailand (EXIM Thailand) and Dr. Narongchai Akarasanee (center), former Minister of Energy, recently visited Xayaburi Hydroelectric Power Project...

Thailands Promotion of Advanced Technology and Eco-system Development Enables Local Producers to Fly Higher

Thailand has been experiencing a gradual shift from a manufacturing to a high-value manufacturing economy after the country has put all its efforts into promoting the use of advanced technology, science, and innovation in parallel with the development of...

Get 5-Baht Cashback when making payment via K PLUS for BTS tickets until April 30, 2019

To celebrate the latest QR Code payment service via K PLUS for one-way BTS tickets bought from ticket issuing machines at BTS Stations, KBank has teamed up with BTS to offer a cashback of 5 Baht/trip, which will be credited into the passenger's account...

OKEx Revisited Bangkok After Launch of Thai Baht Trading

OKEx, a Malta-based world-leading digital asset exchange, has made a stop-over to Bangkok to bring industry leaders together to exchange ideas on blockchain technology. In view of the fast-growing digital asset community in Thailand, OKEx has launched...

MFC launches new 6-month fund investing in global debt instruments, IPO 18 22 February 2019

Mr. Lim Chong Boon Dennis, President, MFC Asset Management Public Company Limited, announced today that MFC will be launching the MFC International Fixed Income Fund 6 Months Series 12 or I-FIX 6M12 during 18 – 22 February 2019. The Fund is a...

Related Topics