Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to AA-minus from A-plus on Gainesville, Texas' previously issued general obligation debt.
At the same time, Standard & Poor's assigned its AA-minus long-term rating to the city's series 2014 GO bonds. The outlook is stable.
"The rating action is based on the application of our local GO criteria released Sept. 12, 2013 and on the city's historical maintenance of very strong reserves," said Standard & Poor's credit analyst Brian Marshall.
Officials will use the series 2014 bond proceeds to make street and road improvements.
The rating also reflects the opinion of the city's strong management, very strong liquidity, very strong budgetary flexibility, strong budgetary performance, and adequate debt and contingent liability profile.
The stable outlook reflects the anticipation that the city will maintain its very strong liquidity and budgetary flexibility and adequate debt and contingent liability given its limited debt plans.
