The Portola Valley School District has received a double upgrade in its bond credit rating from financial services company Standard & Poor's, according to a March 8 district press release.

Standard & Poor's upgraded the district's general obligation bond credit rating two levels, from "AA-" to "AA+," the second-highest possible rating an issuer can achieve, according to a March 6 letter to the district from Standard & Poor's. The new rating is the result of a "strong property tax base" with high resident wealth; "robust" supplementary revenue from sources like the Portola Valley Schools Foundation; good financial management practices; and a low debt burden relative to property values, Standard & Poor's said.

"We are ecstatic to have our rating upgraded two notches," Superintendent Eric Hartwig said in the press release. "Standard & Poor's was particularly impressed with the level of support we receive from the community, and we are so proud to report this result back to our constituents."

It's "very rare" for a school district to receive a double rating upgrade, district financial adviser Chris Hiatt said in the press release.

The district's rating was updated as part of its recent $10 million Measure Z general obligation bond issuance to fund district projects. Measure Z, a $49.5 million bond measure, passed in November 2018. The measure is intended to fund repairs, renovations and new buildings on the district's two campuses.

Standard & Poor's generally reviews four factors in assessing a bond issuer's credit rating: finances, management, debt and pension obligations and the local economy.

A copy of Standard & Poor's letter to the district can be found on the district website.

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