Standard & Poor’s last week awarded a three-notch upgrade to the Lake Michigan Shoreline Water and Sewage Treatment Authority based on the strengthened credit quality of two of its members.
The upgrade boosted the rating to AA from A. The outlook is stable.
Debt issued by the authority is secured by the limited-tax general obligation pledge of the townships of Lincoln Charter, St. Joseph Charter, and Royalton. Each township is solely responsible for its share of debt service, analysts noted. The townships are located in the southwest corner of the state near Lake Michigan and the southern border of Indiana.
The authority consists of three townships and two villages, and its debt is secured by limited-tax GO pledge of members.
The upgrade comes as Lincoln Charter and St. Joseph Charter townships have both seen balanced operations and strong general fund revenues, Standard & Poor’s said. “The townships’ access to more diverse economic and employment centers provides additional rating stability,” analysts said.