NEW YORK - Moody's Investors Service said it has upgraded to Aa1 from Aa2 the city of Isle of Palms, S.C.'s $14.1 million outstanding general obligation bonds.
The bonds are secured by the city's unlimited ad valorem tax pledge.
The rating upgrade reflects the city's large sized tax base supported by stable residential and tourism sectors, solid financial position with ample reserves, and low debt burden with rapid amortization of debt payments.
The rating also considers the city's above average wealth levels, which have continued to strengthen relative to the state and nation in recent years.
The rating upgrade also reflects a correction of the rating on the city's General Obligation Bonds, Series 1999. On August 8, 2006, the city's outstanding general obligation debt (Series 2003 and Series 1999) should have been upgraded to A1 from A2.
However, due to an internal administrative error, Series 1999 was missed from the rating action.
On May 1, 2010, Moody's recalibrated the city's general obligation bonds.
Series 2006 and Series 2003 were recalibrated to Aa2 from A1, but because Series 1999 had been inadvertently omitted from the previous rating action and thus carried a rating of A2, it was recalibrated to Aa3 from A2. This rating upgrade takes into account the correction of the rating for Series 1999 to Aa2 from Aa3.