CHICAGO – Standard & Poor’s has lifted the Chicago suburb of Downers Grove’s general obligation credit to AAA status after applying its new ratings criteria to a review of the credit ahead of a planned refunding.

The village previously was rated AA-plus. The outlook is stable.

“The upgrade is based on the application of our recently released local GO criteria,” said Standard & Poor’s analyst David Smith.

The village intends to refund some outstanding debt from a 2005 issue for savings.

The rating reflects the village’s strong economy that benefits from its location close to Chicago; very strong budgetary flexibility, with 2012 audited reserves at 41% of general fund expenditures; very strong liquidity, moderate debt and other liabilities, and aggressive capital spending plans, the rating agency said.

“This outstanding municipal bond rating is directly attributable to the village’s efforts to be a steward of financial sustainability,” Mayor Martin Tully said in a statement. “With this analysis and report, Standard & Poor’s has acknowledged our long range planning efforts and exceptional management practices. All Downers Grove residents and businesses benefit as the Village will refinance the bonds at a lower cost.”

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