Standard & Poor's Ratings Services said it raised its underlying rating on East Rockaway Village, N.Y.'s general obligation bonds to AA-plus from A-plus.
The outlook is stable.
"The upgrade is based on our view of the village's improved reserve position achieved through consistently strong operating performance, and is pursuant to our local GO criteria released Sept. 12, 2013," said Standard & Poor's credit analyst Lindsay Wilhelm.
The AA-plus rating further reflects East Rockaway's very strong economy, very strong budgetary flexibility, adequate budgetary performance, very strong liquidity, strong management, and adequate debt and contingent liability profile.
The stable outlook reflects the expectation the village will maintain its very strong financial position by following its conservative budgeting practices. Participation in the New York City MSA and limited debt needs further support the current rating. Therefore, the rating agency does not anticipate changing the rating within the two-year outlook horizon.
However, should East Rockaway fail to take appropriate action to mitigate any budgetary pressure that may affect budgetary performance and flexibility, it could lower the rating. A higher rating will require formalization of the village's management policies coupled with maintenance of reserves at or near current levels.
