Standard & Poor's Ratings Services said it raised its underlying rating to A-minus from BBB-plus on Calumet City, Ill.'s previously issued general obligation debt.
The outlook is stable.
"The rating action is based on our view of additional audited information on the city's financial position and the city's significant improvement in its available general fund balance, as reflected in the fiscal 2012 draft financial statements," said Standard & Poor's credit analyst Jennifer Boyd.
The rating is based the city's: merely adequate income levels and market value per capital; high unemployment rate; delayed financial reporting and potential budget pressures resulting from declines in the city's property and sales tax base; and elevated debt service carrying charge, coupled with significant fixed costs from pension and other postemployment benefits.
The stable outlook is based on anticipation that the city will maintain the very strong general fund reserves reflected in its draft financial statements for fiscal 2012 and catch up on its audits in the near future.