Moody's Investors Service said it has upgraded to Aa2 from Aa3 the rating on the charter township of Green Oak, Mich.'s outstanding general obligation limited tax debt and assigned the Aa2 rating to the township's $14.5 million capital improvement bonds, Series 2013.
The upgrade to the Aa2 rating affects $39 million of post-sale general obligation limited tax debt that is rated by Moody's. Total outstanding debt will equal $40.2 million following the current sale.
Debt service on the bonds is secured by the township's general obligation limited tax pledge, though payments are expected to be made with revenue collected from a new, voted 1.66 mill road improvements levy. Proceeds of the bonds will be used to finance road improvements throughout the township. The voted levy is in place for fifteen years, concurrent with the maturity of the current bonds.
The upgrade to the Aa2 rating incorporates the township's fairly affluent and moderately-sized tax base located in Livingston County (GOLT rated Aaa), strong financial position supported by annual growth in General Fund and total operating reserves, and manageable debt burden.
The Aa2 limited tax rating is equivalent to an implied general obligation unlimited tax rating given the township's demonstrated history of strong management practices that have contributed to annual growth in available reserves and a strong financial position.
