Standard & Poor's Ratings Services said it raised its underlying rating on Warren County, N.C.'s general obligation bonds one notch to A-plus from A with a stable outlook.
"The upgrade is based on the county's maintenance of very strong reserves, despite certain planned drawdowns, during the national recession," said Standard & Poor's credit analyst Lindsay Wilhelm.
The rating further reflects the county's: sizable tax base with extremely strong market value per capita; historically sound financial operations, coupled with solid general fund reserve levels; and a favorable debt position.
Offsetting these strengths are the county's: limited and rural local economy in North Carolina's Northern Piedmont region; below-average wealth and income levels; and a historically high unemployment rate.
The bonds are a general obligation of the county.
The stable outlook reflects Warren County's strong financial performance through difficult economic conditions, as well as its stable, though limited economy with strong property values. Future rating stability will depend on the county's ability to maintain very strong reserve levels. However, given the county's current reserve position, the rating agency does not expect the rating to change within the two-year outlook parameter.
