Moody's Investors Service said it has upgraded to A3 from Baa2 the city of Westland, Mich.'s water and sewer system revenue debt.
Concurrently, Moody's has removed the system's positive outlook.
The city has $2.4 million of revenue debt outstanding.
The bonds are secured by the system's net water and sewer revenues.
The upgrade to A3 from Baa2 reflects the system's improved financial position due to the implementation of sizeable rate increases that have brought the enterprise back into compliance with its rate covenant.
The upgrade also takes into consideration the system's manageable debt ratio with moderate future borrowing plans, and relatively stable residential customer base.
