S&P: Schriever Fire Protection District, LA General Obligation Bond Rating Raised To 'A-' On Strong Finances
"The upgrade is based on the district's recent surpluses and the ongoing maintenance of a very strong general fund balance," said S&P Global Ratings credit analyst Alexander Rawlings.
The 'A-' rating reflects our assessment of the district's:Limited purpose, with limited operational responsibilities, which minimizes the risk of significant operational expenditures;Very strong finances, with a recent history of general fund surpluses; andLow overall debt. The rating is constrained, in our opinion, by the district's moderately concentrated tax base, with significant exposure to the petroleum industry.
The stable outlook reflects our expectation that the district will maintain a very strong financial position, but that the limited and concentrated nature of the local economy will remain a constraining factor for the foreseeable future. For those reasons, we don't expect a rating change within the two-year outlook horizon.
A substantial diversification and expansion of the local economy, particularly if wealth and income levels were to improve, could result in an upgrade.
Significantly degraded finances, especially if reserves were to fall below one year's operational expenditure, could result in a downgrade.
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