Shoreline School District's bond rating upgraded by Standard & Poor's

Friday, October 25, 2013

Standard / Poor's Ratings Services has raised its school district issuer credit rating (ICR) to 'AA-' from 'A+' on the Shoreline School District, and long-term rating to AA+.

S/P says its raised rating “reflects our view of the district's strengthened management practices and policies as well as its maintenance of strong reserves since fiscal 2010."

"The district benefits from strong community support, which has allowed the district to pass both M/O and capital projects levies, notes Standard / Poor's credit analyst Carl Hargreaves. “The district has ended each year since 2007 with a surplus operating result. This has allowed the district to build up reserves to levels we consider strong.”

S/P said the stable outlook on the long term ratings for Shoreline reflects recent growth in the district's full-time equivalent (FTE) student enrollment. Enrollment has increased in 2013 by 2 percent to 8,882 after moderately declining during the prior five fiscal years.

The District projects continued enrollment increases during the next four years, partly as a result of an increase in elementary school enrollment and renewed residential development within the district. Comparisons of the district's budgeted and actual enrollment show a track record of conservatively budgeting for enrollment, with actual enrollment outpacing budgeted enrollment in all but one year since 2008.

The District plans to sell $10 million in new bonds soon of the $63 million remaining from the District's 2006 authorization. An improved rating makes bonds more attractive to investors.


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