Standard & Poor's Ratings Services said it raised its long-term rating to AAA from AA-plus on the Indianapolis Local Public Improvement Bond Bank, Ind.'s series 2003D multipurpose bonds.
The outlook is stable.
"The rating change reflects the Indianapolis-Marion County Public Library's (IMCPL) obligation under the series 2003D bonds maturing," said Standard & Poor's credit analyst John Sauter, "so the rating is now based on the credit quality of the city of Indianapolis."
The series 2003D bonds were issued to purchase obligations of the IMCPL; the city of Indianapolis; and the city's sanitary, flood control, metropolitan thoroughfare, and park districts. Each entity pledged ad valorem property taxes, subject to the circuit breaker, to their respectively loan.
The AA-plus rating reflected the credit quality of the IMCPL, which the agency viewed as the weakest of these obligors. Each of the city's special districts is under financial oversight and control by the city, so they are evaluated based on the city's credit quality.
The IMCPL loan has matured, as has the city's loan, but each of the city's special district loans are outstanding through 2018. The rating now reflects security provided by these special districts, and ultimately reflects the credit quality of Indianapolis.