Santa Clara Unified School District, CA Approximately $424 Million GO Bonds Assigned 'AA+' Rating

CENTENNIAL (S&P Global Ratings) March 13, 2019--S&P Global Ratings assigned 
its 'AA+' long-term rating to Santa Clara Unified School District, Calif.'s 
$46 million series 2019 (election of 2014) general obligation (GO) bonds, its 
$360 million series 2019 (election of 2018) GO bonds, and its $18.035 million 
2019 GO refunding bonds. At the same time, S&P Global Ratings affirmed its 
'AA+' long-term rating on the district's GO bonds outstanding, and its 'AA' 
long-term rating on the district's certificates of participation (COPs) 
outstanding. The outlook is stable.

"The rating reflects our view of the district's very strong economy and 
significant revenue flexibility due to its 'basic aid' status," said S&P 
Global Ratings credit analyst David Mares.

The rating further reflects our view of the district's:
  • Participation in the broad and diverse Silicon Valley area economy;
  • Very strong economic factors, including very strong income indicators and an extremely strong wealth indicator;
  • Significant revenue flexibility given its "basic aid" status, which provides revenue above the state per-pupil funding formula and somewhat insulates the district from state funding fluctuations; and
  • Trend of very strong available fund balance reserves.
Partially offsetting these factors, in our opinion, is the district's high 
debt per capita, and expected drop in AV due to the appeal of a top taxpayer.

Proceeds from the series 2019 (election of 2014) and series 2019 (election of 
2018) GO bonds will be used build new school buildings and renovate existing 
buildings. The series 2019 refunding bonds will be used to refinance certain 
maturities of the district's series 2010 GO bonds.

Located in Santa Clara County, Santa Clara Unified School District encompasses 
an area of 56 square miles. It serves an estimated population of 154,500 in 
the city of Santa Clara, as well as in portions of Sunnyvale, San Jose, and 
Cupertino. It provides education from preschool to 12th grade, plus adult 
education program, and operates 27 schools.
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