Standard & Poor's Ratings Services assigned its 'BBB' rating to Palo Verde Community College District, Calif.'s school facilities improvement district (SFID) No. 2004-1, series 2006 GO bonds, and affirmed its 'BBB' underlying rating (SPUR) on the district's existing GO debt. The rating reflects: A limited local economic base, with very low income and taxable property values for district residents; A recently weakened but now improving, financial position precipitated by an accounting error that led to negative unrestricted fund balances in fiscals 2002 and 2003; and A high debt burden on a market value basis. Tempering these weaknesses are an improved fiscal position over the past two years, coupled with the flexibility of community college districts to manage enrollments and programs
