OREANDA-NEWS. S&P Global Ratings assigned its 'AAA' long-term rating, and stable outlook, to Florida State Board of Education's public education capital outlay (PECO) bonds, 2016 series E, issued for the State of Florida.

At the same time, S&P Global Ratings affirmed its 'AAA' general obligation (GO) rating on the state's parity debt and its 'AA+' rating on the state's appropriation debt. The outlook on all ratings is stable.

The 'AAA' rating reflects our view of Florida's:Continued good general revenue growth and revenue collections through May 2016 that are still tracking estimates;Restoration of structural budgetary balance;Reserves that, coupled with trust fund reserves, are at levels we consider very strong; Service-based economy, driven by tourism and in-migration, that is experiencing strong employment growth;Good income levels, although substantially weaker than pre-recession levels; andModerate and declining debt burden on most measures; we expect that the state's debt burden will remain manageable and not increase significantly based on current debt authorization and bond issuance plans, including public-private partnerships (P3) project obligations. Although a pledge of gross receipts taxes initially secures the 2016 series E bonds, Florida's full faith and credit pledge ultimately secures the bonds.

"The stable outlook reflects our view of Florida's improved economic climate, positive revenue trends, and structurally balanced budget," said S&P Global Ratings credit analyst Sussan Corson.

Given the state's close monitoring of revenues, should there be unexpected revenue shortfalls, we believe Florida will make adjustments to its budget as needed to maintain structural budgetary balance. Although not expected, downside risk for the rating includes a return to structural imbalance should the state experience lower-than-expected revenue trends, particularly if it faced a major economic downturn. In addition, if a catastrophic hurricane were to make landfall in Florida and substantially weaken the statewide economy or lead to debt issuance that increases the tax-supported debt burden for Florida above that of its state peers, it could pressure the rating.