West Contra Costa Unified School District, CA GO Bond Outlook Revised To Positive On Stronger Available Reserves

Stocks and Financial Services Press Releases Wednesday April 11, 2018 11:11
CENTENNIAL--11 Apr--S&P Global Ratings

CENTENNIAL (S&P Global Ratings) April 10, 2018--S&P Global Ratings revised its outlook to positive from stable and affirmed its 'AA-' long-term rating and underlying rating (SPUR) on West Contra Costa Unified School District, Calif.'s general obligation (GO) bonds outstanding. At the same time, S&P Global Ratings assigned its 'AA-' long-term rating, with a positive outlook, to the district's:

  • 2018 GO refunding bonds,
  • 2018 series D GO bonds (2012 election), and
  • 2018 series E GO bonds (2010 election).

The 2018 GO refunding bonds will be used to refund the district's election of 2002 series C GO bonds (capital appreciation bonds), 2009 GO refunding bonds, and election of 2010 series A GO bonds outstanding. Proceeds from the 2018 series D and series E GO bonds will finance the acquisition, construction, improvement, furnishing, and equipping of certain district facilities.

"The outlook revision reflects our view of the district's sustained strengthening of available reserves, supported by a recently enhanced minimum fund balance policy and the recent board approval of several budget cuts, which management anticipates will eliminate the district's structural imbalance," said S&P Global Ratings credit analyst Alyssa Farrell.

The ratings further reflect our opinion of the district's:
  • Strong local economy with extremely strong wealth and above-average income indicators and participation in the broad and diverse San Francisco Bay Area economy;
  • Maintenance of a very strong reserve position;
  • Additional revenue flexibility provided through the voter-approved assessment district program and parcel tax, which was recently extended for a 10-year period; and
  • Good financial management policies and practices.
Partly offsetting the above strengths, in our view, are the district's high overall net debt burden on a per capita basis, elevated carrying charges, and slow amortization.

The positive outlook reflects our opinion that there is a one-in-three chance that we could raise the ratings within our two-year outlook horizon. If the district's recently approved budget cuts prove fruitful and the district is able to report sustained structural balance in the next two years while managing its relatively elevated debt service requirements, we could raise the ratings. However, if the district were to draw down on its fund balances to levels we consider good according to their current multiyear forecasts, we could revise the outlook back to stable.

Latest Press Release

USD120,000 at stake in CIMBs 3D Conquest to unearth ASEANs top #digital talents Competition sets path for nurturing crucial skills in data science, FinTech and coding among tertiary students

CIMB Group Holdings Berhad ("the Group" or "CIMB") has launched the CIMB 3D Conquest, a competition that aims to identify and attract ASEAN's top creative, young digital talent with an agile and entrepreneurial mindset. Open to all tertiary students, the...

Allianz to become Worldwide Olympic Insurance Partner

The International Olympic Committee (IOC) and Allianz today announced that the insurer will join the "Worldwide Olympic Partner" (TOP) Programme in 2021. Through this sponsorship agreement, Allianz will work with the IOC to provide innovative and...

BYFX Global Co., Limited Announces Business Launch

BYFX Global Co., Limited (BYFX Global) today announced the launch of its retail and institutional business -- offering clients around the globe top-tier liquidity and online OTC trading for Spot FX and Spot Bullion[1]. Striving towards financial...

2018 Robot World to Suggest Direction for the Fourth Industrial Revolution

Showcasing the latest robot technologies from around the world, the 2018 Robot World will be held at KINTEX, Korea from October 10-13, 2018. The Robot World (eng.robotworld.or.kr/wp), celebrating its 13th anniversary this year, consists of four main...

ชวนผู้ประกอบการเรียนรู้เส้นทางความสำเร็จของสตาร์ทอัพแอปพลิเคชัน เคลมดิ อังคาร 25 ก.ย. นี้

ตลาดหลักทรัพย์ฯ ขอเชิญผู้ประกอบการ Social Enterprise (SE) SMEs และ Startup ร่วมอบรมครั้งพิเศษในโครงการ SET Social Impact Gym หัวข้อ "Fintech vs Social Startup... Lesson Learned..." พบกับสตาร์ทอัพเจ้าของแอปพลิเคชัน "เคลมดิ" (Claim Di)...

Related Topics