Standard & Poor’s last week raised Cambridge’s general obligation rating one notch to AA-minus due to its stable financial operations and very strong reserves.

The rating agency also lifted the city’s lease-backed debt one notch to A-plus. The review came ahead of Cambridge’s sale of a series of refunding GOs.

Analysts said the rating reflects the city’s role as a local service and retail center and its participation in the greater Minneapolis-St. Paul area economy and favorable economic indicators that include very strong market value per capita. Offsetting the city’s strengths is its high debt burden.

“We expect that the city will sustain its strong financial reserves and that management will make the necessary budget adjustments in response to the loss of state aid revenues,” analyst Linda Merus wrote in a report.

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