Standard & Poor's Ratings Services said it has raised its underlying rating on the city of Fort Myers, Fla.'s series 2004A gas-tax revenue bonds one notch to A-plus from A.
The outlook is stable.
"We base the upgrade on the stabilization of good coverage of maximum annual debt service payment and indications of the local economy's recovery after the recession," said Standard & Poor's credit analyst Richard Marino.
Munis are entering a negative feedback loop, according to J.P. Morgan analysts led by Peter DeGroot.
Credit ratings for California utilities could face downward pressure as recurring wildfire risks test safety funds and strain balance sheets.
"In a few years, Brightline may have to consider going through something like this again," warned one investor.
Bondholders and Assured Guaranty are providing substantial funding in post-petition and post-bankruptcy packages to keep the project operating.
GASB has issued updated questions and answers designed to clarify how subsidies relate to operating revenue, an important distinction affecting higher education, and transportation entities.
Ahead of a refinancing next week and a new money deal next month, Chicago's spreads have widened, suggesting the market may be pricing in a downgrade, analysts said.
