Standard & Poor's Ratings Services said it raised its underlying rating on Ford County, Kan.'s general obligation sales tax revenue bonds one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of, what it considers, the county's conservative management, which has allowed management to maintain historically very strong available reserves.
"While we do not expect it to take place within the two-year outlook period, we could lower the rating if budgetary flexibility or budgetary performance were to weaken significantly," said Standard & Poor's credit analyst Jim Tchou. "We do not expect to raise the rating within the two-year outlook period due to our expectation that the county's economic profile will likely remain unchanged and continue to constrain the rating."
The county's 0.5% 2007 sales-and-use tax, implemented in October 2007, secures the bonds. In addition, the county has pledged an unlimited ad valorem tax to make bond payments if sales-and-use tax revenue is insufficient to cover debt service. The rating reflects Standard & Poor's view of the strength of the county's GO pledge.
