In the course of routine surveillance, Fitch has affirmed the 'A+' rating on Jurupa Unified School District's ((USD) the district) $55.8 million in outstanding general obligation (GO) bonds. The Rating Outlook is Stable.
The 'A+' rating reflects the district's stable financial position, including a history of balanced operations and satisfactory fund balances, low debt levels with modest capital needs, and the stressed regional housing environment. The rating also considers the local economy, which is characterized by higher than average unemployment and somewhat below average income levels, however, the lower cost of living and proximity to large employment centers mitigates these factors.
The deteriorating housing market's affect on tax collections and assessed valuations is partially mitigated by the district's participation in the county Teeter Plan, wherein the county guarantees the district receipt of 100% of levied property taxes regardless of collection rates, and by the state's minimum per pupil funding formulation. However, a prolonged housing downturn could pressure enrollment, which would reduce total revenues.
Note: Fitch issued an exposure draft on July 31 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework').
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Scott Monroe, +1-415-732-5618
Karen
Ribble, +1-415-732-5770
Cindy Stoller, +1-212-908-0526
(Media
Relations, New York)
