S&P: Fredon Township Board Of Education, NJ Series 2016 GO Refunding School Bonds Rated 'A+'; Outlook Stable
"We do not expect to change the rating within the next two years. All else remaining equal, however, we could raise the rating if the district were to build up fund balance and commit to maintaining it at, what we consider, very strong levels, coupled with the further implementation of stronger policies and procedures in accordance with our Financial Management Assessment methodology," said S&P Global Ratings credit analyst Steven Waldeck. "We do not currently expect to lower the rating. However, we could lower the rating over the medium term if structural imbalance were to occur, leading to fund balance declining unexpectedly to levels we consider adequate."
The stable outlook reflects S&P Global Ratings' opinion that the district will likely maintain its strong finances due to conservative budgeting. The rating service also believes the district's stable economy, enhanced by an extremely strong property tax base, coupled with limited additional debt needs, provides further rating stability.
The board's full-faith-and-credit pledge secures the GO bonds. The New Jersey Fund for the Support of Free Public Schools program provides additional bond security.
S&P Global Ratings understands officials intend to use series 2016 bond proceeds to advance refund the district's series 2008 GO school bonds for cost savings with no extension of maturities.