Summary: Lewis and Clark Community College District, Illinois; General Obligation

S&P Global Ratings revised the outlook to stable from negative on Lewis and Clark Community College District, Ill.'s outstanding general obligation (GO) debt, and affirmed its 'A-' long-term rating and underlying rating (SPUR) on the debt. At the same time, S&P Global Ratings assigned its 'A-' long-term rating with a stable outlook to the district's series 2017A GO refunding bonds and series 2017B GO bonds. The revised outlook reflects the district's available reserve position that increased from 1.7% of operating expenditures to 55.1% of operating expenditures in fiscal 2017, a level we consider very strong. Our view of the district's fund balance, which consists almost entirely of proceeds from bonds issued in fiscal 2017, prevented the rating from being raised.

...S&P Global Ratings revised the outlook to stable from negative on Lewis and Clark Community College District, Ill.'s outstanding general obligation (GO) debt, and affirmed its 'A-' long-term rating and underlying rating (SPUR) on the debt. At the same time, S&P Global Ratings assigned its 'A-' long-term rating with a stable outlook to the district's series 2017A GO refunding bonds and series 2017B GO bonds. The revised outlook reflects the district's available reserve position that increased from 1.7% of operating expenditures to 55.1% of operating expenditures in fiscal 2017, a level we consider very strong. Our view of the district's fund balance, which consists almost entirely of proceeds from bonds issued in fiscal 2017, prevented the rating from being raised. Had there been no debt issuance in fiscal 2017, the fund balance would have likely been considered adequate. We do note, however, that the district now has significant budgetary flexibility, which warrants the stable outlook....

Summary