Standard & Poor's Ratings Services said it has raised its underlying rating on Warren County, N.Y.'s general obligation bonds one notch to AA-minus from A-plus.
The outlook is stable.
"The upgrade is based on the county's improved financial position following the implementation of structural budgetary reforms, and our view that the county is on a trajectory to maintain a stable financial position," said Standard & Poor's credit analyst Lindsay Wilhelm.
The rating further reflects the county's: local economy with a significant tourism and second home component; extremely strong property values and good income levels; strong financial position with good financial management practices in place; and low overall net debt burden.
Offsetting these strengths is the seasonal nature of the county's economy and financial pressures that include somewhat limited revenue-raising flexibility.
The stable outlook reflects Warren County's significant structural adjustments to its budget and sustainable path to maintain strong reserves. As a result, the agency does not expect to change the rating during the two-year outlook horizon. However, should the county draw down on reserves for operating purposes over a sustained period, it could revise the rating downward. Upward rating potential is limited given the seasonal nature of the economy and continued structural pressures.