Kankakee County Community Consolidated School District No. 258 (St. George), IL 2013 GO Bond Rating Raised To 'A+'

CHICAGO (S&P Global Ratings) March 13, 2019--S&P Global Ratings raised its 
long-term rating on Kankakee County Community Consolidated School District 
(CCSD) No. 258 (St. George), Ill.'s series 2013 general obligation (GO) 
refunding school bonds one notch, to 'A+' from 'A'. The outlook is stable. 

"The upgrade reflects our view of the district's recent increases in reserves 
due to several years of consecutive operating surpluses," said S&P Global 
Ratings credit analyst Daniel Hughes.

The district's available fund balance increased to approximately $2.25 
million, or 46.4% of general fund expenditures at the end of fiscal 2018, 
which we consider very strong, from $587,000, or 16.2% of general fund 
expenditures at the end of fiscal 2012. While management indicates it may use 
a portion of the increased fund balance to pay for one-time capital 
expenditures, we believe the district will continue to maintain reserves in 
compliance with its minimum target of 25% of operating expenditures. 

Kankakee County CCSD No. 258 (St. George) serves an estimated population of 
3,829.

The stable outlook reflects our opinion that despite potential drawdowns for 
one-time capital expenditures, district officials will take proactive steps to 
maintain reserves at levels that we consider at least strong on a cash basis. 
Therefore, we do not expect to change the rating within the two-year outlook 
period.

We could raise the rating if the district's market value per capita improves 
substantially while maintaining reserves at levels that we consider at least 
strong on a cash basis.

If financial performance deteriorates significantly, or if the district draws 
down reserves below current expectations, we could lower the rating.