Standard & Poor's Ratings Services said it raised its rating on Grand Traverse County, Mich.'s existing limited-tax general obligation Michigan Transportation Fund bonds to AA-plus from AA.
The outlook is stable.
"The upgrade is due to improved debt service coverage levels," said Standard & Poor's credit analyst Errol Arne.
The rating on the county reflects the statewide collection of pledged revenues distributed to the county; stable trend of gas and weight tax receipts; and the expectation of limited additional future debt needs combined with strong protections against debt dilution that will contribute to the county's maintenance of very strong maximum annual debt service coverage.
The MTF bonds are secured by a first-lien pledge of state-collected annual gas and weight taxes returned to the county from the MTF for highway and road purposes, pursuant to Act 51, as amended. As additional security, the county has pledged its limited-tax GO. The rating on the county's limited-tax GO bonds is AA.
