NEW YORK - Standard & Poor's Ratings Services said it raised its rating on the city of Leesburg, Fla.'s electric system revenue bonds, series 2007 A and B and 2004 and its utility system revenue bonds, series 2007 A and B and 2004, to A-plus from A-minus.
The outlook is stable. As of Sept. 30, 2009 (fiscal year-end), the electric utility had $39 million of debt outstanding, while the combined utilities had $38.4 million of debt outstanding. The electric bonds are payable solely from, and secured by, a lien on, and a pledge of, the net revenues of the electric system, while the utility bonds are payable solely from, and secured by, a lien on, and a pledge of, the net revenues of the gas, water, and wastewater systems.
"The upgrade reflects our assessment of the utility's buildup of healthy cash reserves based on policies amended in 2007 and a fairly strong level of debt service coverage, which we expect to continue into the future," said Standard & Poor's credit analyst Judith Waite.
