Standard & Poor's Ratings Services said it raised its long-term rating on Wells, Minn.'s general obligation bonds to A-plus from A.
At the same time, Standard & Poor's assigned its A-plus long-term rating to the city's series 2014A GO bonds. The outlook is stable.
"The higher rating reflects maintenance of very strong financial reserves," said Standard & Poor's credit analyst Carol Hendrickson.
A pledge of the city's full faith credit and resources and an agreement to levy ad valorem property taxes without limit as to rate or amount secure the bonds. Management also expects to use special assessments to support debt service. Wells will use bond proceeds to finance various street improvements and to crossover refund on Feb. 1, 2016 the Feb. 1, 2017 through 2024 maturities of its series 2008A GO improvement bonds.
"The A-plus rating reflects our assessment of the city's very strong budgetary flexibility and liquidity," added Hendrickson.
