Summary: South Butler County School District, Pennsylvania; General Obligation

S&P Global assigned its 'A+' long-term rating to South Butler County School District, Pa.'s $34.57 million series 2022 general obligation (GO) bonds. The outlook is stable. The district's full-faith-and-credit pledge, subject to Act 1 Index limitations, secures the series 2022 bonds. Pennsylvania Act 1 of 2006 restricts a district's ability to increase local tax rates above the Act 1 Index, as determined by the Pennsylvania Department of Education, without electorate approval. This limitation applies to GO debt levies. Despite these limitations, we rate the limited-tax GO debt at the same level as our view of the district's general creditworthiness, reflected in the unlimited-tax GO bond rating, due to a lack of limitations on the fungibility of resources available for debt

...S&P Global assigned its 'A+' long-term rating to South Butler County School District, Pa.'s $34.57 million series 2022 general obligation (GO) bonds. The outlook is stable. The district's full-faith-and-credit pledge, subject to Act 1 Index limitations, secures the series 2022 bonds. Pennsylvania Act 1 of 2006 restricts a district's ability to increase local tax rates above the Act 1 Index, as determined by the Pennsylvania Department of Education, without electorate approval. This limitation applies to GO debt levies. Despite these limitations, we rate the limited-tax GO debt at the same level as our view of the district's general creditworthiness, reflected in the unlimited-tax GO bond rating, due to a lack of limitations on the fungibility of resources available for debt service. Officials intend to use series 2022 bond proceeds to finance improvements to renovate the high school facility....

Summary