Standard & Poor's Ratings Services said it has raised its underlying rating on Lake George Village, N.Y.'s general obligation bonds one notch to A-plus from A.
The outlook is stable.
"The upgrade is based on the village's strong financial performance, which has contributed to very strong reserve levels," said Standard & Poor's credit analyst Lindsay Wilhelm.
Additional credit factors include the village's extremely strong property values and very strong financial position with budgetary flexibility.
Partially offsetting these credit strengths are the village's moderately concentrated tax base; adequate income levels; and moderate-to-high debt burden with additional capital plans.
The village's faith and credit pledge secures the bonds.
The stable outlook reflects the agency's view that Lake George will maintain its very strong reserve levels given its budgetary flexibility. S&P therefore does not expect to change the rating during the two-year outlook horizon. A steep or sustained reduction in reserves could lead to lowering the rating. The agency does not anticipate raising the rating, given the village's adequate-but-below-average income levels, high debt burden, and moderate tax base concentration.
