Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to A-plus from A on the city of Corsicana, Texas' general obligation bonds outstanding.
At the same time, Standard & Poor's assigned its A-plus long-term rating to the city's series 2013 GO bonds. The outlook is stable.
"The raised ratings are due primarily to our view of the recent, further strengthening of the city's financial position," said Standard & Poor's credit analyst Lauren Spalten.
The ratings reflect the city's: role as a manufacturing and distribution center with direct highway access to the deep and diverse economy of the Dallas MSA; relatively stable property tax base and lack of taxpayer concentration; adequate wealth and income levels; good financial management policies; and moderate overall net debt burden as a percent of market value, coupled with impending future capital needs requiring the issuance of additional debt.
Bond proceeds will be used primarily to fund street and drainage improvements and maintenance.