OREANDA-NEWS. S&P Global Ratings revised its outlook to positive from stable and affirmed its 'A-' underlying rating on Overton Independent School District, Texas' existing bonds. At the same time, S&P Global Ratings assigned its 'AAA' long-term rating and 'A-' underlying rating for credit program to the district's series 2016A unlimited tax-refunding bonds.

"The positive outlook reflects the district's increasing reserve levels in the last three fiscal years, and management's expectation to increase its reserves to 31% of operating expenditures in fiscal 2016," said S&P Global Ratings credit analyst Joyce Jung.

The long-term rating reflects our view of the district's eligibility for, and participation in, the Texas Permanent School Fund bond guarantee program, which provides the security of a permanent fund of assets that the district can use to meet debt service on bonds guaranteed by the program.

The 'A-' rating reflects our view of the district's:

Adequate income levels and low wealth level;Limited tax base, with a local economy concentrated primarily in mineral and lumber production;Very strong reserves; andMaximum maintenance and operations tax levy. We understand that bond proceeds will be used to refund the district's debt outstanding for savings.