NEW YORK -Â Moodyâ€™s Investors Service said it has upgraded to A1 from A2 the rating of Brawley Union High School District, Calif.’s $4 million in general obligations debt.
The upgrade to A1 reflects the district’s improved, albeit still weak, wealth levels following decades of decline, as well as the upturn in the AV in fiscal 2014 following three years of decline.
The A1 rating and upgrade also incorporate the district’s multi-year track record of both, generating operating surpluses, and maintaining an above average amount of reserves during a period in which many other school districts saw their finances weaken.
The district’s ability to maintain a low debt burden and the expectation that debt levels will remain low in the foreseeable future is also favorably factored in the rating and upgrade.
The high regional unemployment rate is also incorporated into the rating.
The GO rating also reflects the strength of the voter-approved, unlimited property tax pledge securing the bonds and the well-established levy and collection history for the debt service levy. The county, rather than the district levies, collects, and disburses the district’s property taxes, including the portion constitutionally restricted to debt service on general obligation bonds.