OREANDA-NEWS. S&P Global Ratings revised the outlook to positive from stable and affirmed its 'A-' underlying rating (SPUR) on Chawanakee Unified School District, Calif.'s outstanding general obligation (GO) bonds and its 'BBB+' long-term rating on the district's previously issued certificates of participation (COPs). S&P Global Ratings also assigned its 'A-' long-term rating to the district's election of 2005, series 2016 GO bonds.

"The outlook revision reflects our view of the district's rapid turnaround in financial performance," said S&P Global Ratings credit analyst Benjamin Geare. "While the district's smaller size and low nominal fund balance suggest some continued risk of deterioration, in our opinion there is a one-in-three chance that we could raise the ratings within our two-year outlook horizon."

The ratings also reflect our view of the district's:

Access to employment opportunities in Fresno combined with adequate income levels and extremely strong per capita wealth levels, andModerate overall debt burden and carrying charges. Partly offsetting the above strengths, in our view, are the district's:

Recent weak financial performance that culminated in a negative financial position at the end of fiscal 2014, andAbove-average countywide unemployment rate, which we believe is a partial function of the agriculture industry's cyclicality.