Standard and Poor's Ratings Services said it raised its rating on Greenville, Ala.'s existing general obligation (GO) debt to A from A-minus, based on its improved budgetary flexibility and projected maintenance of a strong financial position.
At the same time, it assigned an A long-term rating to the city's series 2014 GO refunding warrants. The outlook is stable.
"We anticipate that the city will maintain its strong budgetary flexibility and adequate liquidity position, negating the effects of the very weak local economy and adequate budgetary performance," said Standard & Poor's credit analyst Brian Marshall.
Greenville's budgetary flexibility is strong, with available reserves at 10.8% of operating expenditures in fiscal 2013. Officials are projecting to end fiscal 2014 with available reserves of 11% and have budgeted for similar results for fiscal 2015. These amounts include roughly $700,000 that is available in the city's capital improvement fund that are not tied to past warrant proceeds but to previous general fund transfers.
