NEW YORK - Standard & Poor's Ratings Services said it has raised the rating on Buffalo Grove, Ill.'s general obligation (GO) bonds to AAA from AA-plus, and assigned its AAA rating to the village's series 2010A GO refunding bonds and series 2010B GO corporate purpose bonds.
"The upgrade reflects the village's maintenance of very strong financial reserves," said Standard & Poor's credit analyst John Kenward.
Other credit factors are the village's: participation in the deep and diverse Chicago metropolitan area economy; very strong income level; good financial management; and low overall debt burden with modest additional debt needs and rapid amortization.
The bonds are general obligations of the village secured by unlimited ad valorem taxes. The village will use proceeds from the series 2010A bonds to refund prior debt, and proceeds from the series 2010B bonds to fund stormwater, flood control, and other capital projects.
The stable outlook reflects Standard & Poor's expectation that Buffalo Grove, with the help of careful budgeting and its good financial management, will maintain strong financial operations and very strong reserves. The village's participation in the diverse Chicago metropolitan area economy supports the outlook.
