Standard & Poor's Ratings Services said it raised its long-term rating to AA-minus from A-plus on Lake County Public Library, Ind.'s general obligation bonds.
At the same time, it assigned a AA-minus long-term rating to the library district's series 2013 GO refunding bonds. The outlook is stable.
"The upgrade is based on significant improvements in available cash reserves coupled with no plans to significantly spend them down over the next two years," said Standard & Poor's credit analyst Anna Uboytseva.
The rating also reflects the library's: location adjacent to Chicago, permitting access to the Chicago metropolitan area economy; maintenance of a very strong general fund cash balance; additional liquidity available outside of the general fund; and moderate debt burden coupled with no plans for additional debt, and rapid amortization.
The full faith and credit of the library district is pledged to the bond payments. The library will use the debt proceeds and funds on hand to advance refund the series 2003 bonds for interest-cost savings.
Lake County Public Library is the third-largest library district in Indiana. It is located in Lake County in northwest Indiana, approximately 30 miles southeast of downtown Chicago.