Standard & Poor's Ratings Services said it raised its underlying rating on Chenango, N.Y.'s general obligation debt to A-plus from A.
The outlook is stable.
"We base the upgrade on the town's maintenance of what we consider a very strong general fund reserve and operating surpluses," said Standard & Poor's credit analyst Apple Lo.
The GO SPUR reflects Chenango's: access to employment in the Binghamton metropolitan statistical area; good wealth and income; and very strong general fund reserve at or above 36% of operating expenditures for the most recent five years.
Somewhat offsetting these credit strengths are the town's: limited local economy; dependence on cyclical sales tax revenues; and moderate debt burden.
The town's full faith and credit pledge secures the bonds.
The stable outlook reflects Standard & Poor's opinion that Chenango's stable local economy will continue to underlie its strong financial position. The district's modest additional capital needs will provide further financial flexibility as it retires debt. While the agency does not expect the rating to change within a two-year outlook time frame, significant decline in the sales tax revenue without offset could place a downward pressure on the rating. Conversely, further diversification of the local economy over time could lend positive rating actions.
Chenango is primarily a residential community in Broome County, adjacent to Binghamton in southern New York State. According to the U.S. Census Bureau, the town's population was an estimated 11,252 in 2010.
