Standard & Poor’s last Thursday raised its underlying rating on Trussville’s general obligation debt to AA from AA-minus based on significant tax base growth and strong financial reserves, the agency said.
The upgrade affected approximately $60 million of outstanding debt. The outlook is stable.
The rating and outlook reflect a healthy local economy with above-average income levels and good access to Birmingham, said a report by analyst Kate Choban.
“Debt levels are likely to remain high, but the city’s strong reserves and operating performance should enable it to finance most future projects on a pay-as-you-go basis, thereby moderating capital pressures,” she said. “A decline in the city’s fund balance levels would put negative pressure on the rating.”
Trussville is in Jefferson County, about 15 miles northeast of Birmingham.
