The 'AAA' rating on Romeo Community School District, Mich.'s bonds is based on the bonds' qualification under the Michigan School Bond Loan Fund program. The 'A+' Standard&Poor's underlying rating (SPUR) reflects the district's: Unlimited-tax GO pledge; Residential tax base in growing Macomb County; Strong financial management, which has enabled it to maintain solid reserves despite growth pressures; and Moderate debt burden. An offsetting credit factor is capital pressure related to enrollment growth. The district serves a 94 square-mile area in northwest Macomb County that includes the Village of Romeo (population 3,800) and portions of seven townships--the largest of which are Bruce and Washington townships. Residential growth has been rapid in the county and district over the past decade.
