Standard & Poor's Ratings Services said it raised its rating on Lake Dallas, Texas' general obligation debt two notches to A-minus from BBB.
The outlook is stable.
"The upgrade is based on an increase in the city's available fund balances above negative 5% of general fund expenditures, as well as improvements in the city's economic and debt factor scores," said Standard & Poor's credit analyst Russell Bryce.
A pledge of the city's ad valorem property tax levy, within the limits prescribed by law, secures the bonds.