OREANDA-NEWS. S&P Global Ratings raised its long-term rating to 'AA' from 'AA-' on Oak Grove Union School District (Sonoma County), Calif.'s district's existing general obligation (GO) bonds and raised its long-term rating to 'AA-' from 'A+' on the district's outstanding lease revenue bonds. At the same time, we assigned our 'AA' long-term rating and SPUR to the district's election of 2014 series B GO bonds. The outlook is stable.

"The rating action reflects our view of the district's trend of maintaining very strong available reserves in each of the past five audited years, with supplemental funding providing an excess 13% in additional revenue in fiscal 2016," said S&P Global Ratings credit analyst Kaila Spalinger.

The ratings reflect our view of the district's:

Participation in the diverse San Francisco Bay Area economy, coupled with strong to very strong income indicators;Stable average daily attendance accompanied by a wait list, which gives management flexibility to manage its enrollment; andModerate to low overall net debt burden with a fairly rapid amortization rate. We understand that bond proceeds will be used to finance construction and improvements to school facilities.