Moody's Investors Service said it has upgraded the rating on Renville County, Minn.'s general obligation debt to Aa2 from Aa3.
Moody's has also upgraded the rating on the county's lease revenue debt to Aa3 from A1.
Concurrently, Moody's has assigned a Aa2 rating to the county's $10.0 million general obligation capital improvement bonds, Series 2013. The Aa2 rating applies to $16.8 million of post-sale GO debt, and the Aa3 rating applies to $1.3 million of outstanding lease revenue bonds.
The Series 2013 bonds are secured by the county's general obligation unlimited tax pledge. Proceeds of the bonds will finance certain road projects identified in the county's capital improvement plan.
The Aa2 GO rating reflects the county's moderately sized, rural tax base located in southwestern Minnesota (Aa1/stable outlook) experiencing rapid valuation growth driven by agricultural land appreciation; well-managed finances and healthy reserves; low debt burden with no future borrowing plans; and average pension liabilities.
The Aa3 rating on the county's lease revenue bonds reflects the risk of annual non-appropriation, the essential purpose of the pledged asset (county health and human services offices connected to the county's main administration building), and the overall credit quality characteristics of the county as reflected in the Aa2 GO rating.
