S&P: West Central School District 49-7, SD 2010 Capital Outlay Certificates Rating Raised To 'AA-' Due To Crossover Refunding
We also assigned our `AA-' rating to the district's series 2016 limited-tax refunding certificates and affirmed the 'AA-' long-term rating on the district's series 2015, 2014, and 2010B certificates.
"We raised the rating due to the crossover refunding of the certificates on July 15, 2020, which we believe makes the lack of an additional bonds test for the certificates no longer an issue," said S&P Global Ratings analyst John Kenward. "Since the series 2010 certificates are scheduled for optional redemption on the crossover date, their final maturity no longer exceeds the maturity of the other certificates."
The stable outlook reflects our expectation that the district's capital outlay levy will continue to provide at least adequate debt service coverage because of slow, but steady, tax-base growth and the district's lack of additional debt plans. We therefore do not anticipate changing the rating within the two year outlook horizon.
If MADS coverage declined substantially below a level that we consider strong, whether because of either AV deterioration or debt issuance, we could lower the rating.
Although not expected, we could raise the rating if MADS coverage substantially improved.
The 165-square-mile district serves an estimated population of 6,700 in Minnehaha and McCook counties, approximately 12 miles west of Sioux Falls, the largest city in South Dakota. The district includes the towns of Hartford and Humboldt.