Laredo, Texas, GOs Raised to AA by S&P

Standard & Poor's Ratings Services raised its long-term and underlying rating (SPUR) to AA from AA-minus on the city of Laredo, Texas' existing general obligation debt.

At the same time, Standard & Poor's assigned its AA rating to the city's series 2012 combination tax and revenue certificates of obligation, and series 2012 public property finance contractual obligations. The outlook is stable.

"The raised rating reflects our view of the city's continued economic growth and expansion, as well as its continued maintenance of strong reserves," said Standard & Poor's credit analyst Kate Choban. "Further supporting the rating is our view of the city's very strong finances and below-average unemployment levels," Choban added.

Officials plan to use bond proceeds to fund various capital improvements in the city.

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