Standard & Poor's Ratings Services said it raised its underlying rating on DeKalb-Cherokee Counties Gas District, Ala.'s gas revenue debt one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the system's good financial performance, evidenced by strong liquidity and the maintenance of strong debt service coverage that Standard & Poor's believes is sustainable due to the system's lack of additional debt plans.
At the same time, the rating service assigned its A-plus long-term rating and stable outlook to the district's $6.905 million series 2015 gas revenue bonds.
"Due to the system's financial stability, supported by, what we consider, its strong liquidity and lack of additional debt plans, we do not expect to lower the rating over the outlook's two-year period. In addition, we believe the area's below-average income currently precludes a higher rating," said Standard & Poor's credit analyst Scott Sagen. "If the district's financial metrics were to deteriorate for any reason, we will review the rating accordingly."
