Standard & Poor's Ratings Services said it raised to AA from AA-minus and A its long-term rating and underlying rating, respectively, on Cleveland-Cuyahoga Port Authority, Ohio's series 2009A taxable lease revenue bonds.
The negative outlook reflects the rating outlook on the U.S.
"The upgrade is based the application of our criteria on U.S. federal future flow securitization," said Standard & Poor's credit analyst John Kenward.
The bonds are secured by payments from the U.S. Department of Veterans Affairs to the owner under services agreements for a medical office building and a parking garage constructed next to the campus of the VA's Louis Stokes Medical Center in Cleveland. To build the project, the owner entered into an enhanced-use lease with the VA. The project was completed in 2011 and both buildings are in use.