Standard & Poor's Ratings Services said it raised its rating on Mammoth Lakes, Calif.'s (2000 land acquisition project) certificates of participation one notch to BBB from BBB-minus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the town's declining operational imbalances and continued long-term restructuring efforts, intended to address additional fixed costs incurred by a previously settled lawsuit.
"The stable outlook reflects our opinion of improvements in the town's underlying economy and the town's declining deficits owing to the steps management is taking to address its structural imbalance. If the town continues to rectify its operations and reserves do not weaken, we could raise the rating," said Standard & Poor's credit analyst Lisa Schroeer. "Moreover, given the town's improving operating trends, we do not expect to lower the rating over the next year, even if the town experiences a slight deficit, so long as overall improvement continues. However, should reserves weaken to levels closer to 0% of operations or negative, or operational imbalances increase, the rating could face some negative pressure."
Mammoth Lakes is located in Mono County, Calif., in the east-central portion of the state.
