Standard & Poor's Ratings Services said it raised its rating on Mobile County, Ala.'s existing general obligation debt to AA from AA-minus due to the county's ongoing role as a regional economic center and ongoing strong financial performance coupled with strong financial management policies.
The outlook is stable.
At the same time, Standard & Poor's assigned its AA rating, and stable outlook, to the county's series 2014A refunding bonds and series 2014B GO warrants. The bonds and warrants are secured by a pledge of the county's full faith and credit. The series 2014A bonds are further secured by a dedicated 6.5 mill ad valorem tax. The agency said it has rated both the 2014A and 2014B issuances as general obligations of the county since it views that as the strongest pledge.
"We expect that the county's broad and diversified economic base will continue to provide tax revenue stability, which when coupled with its strong financial management practices, will allow for maintenance of its very strong financial profile," said Standard & Poor's credit analyst Omar Tabani. "Furthermore, we anticipate that the county's debt and contingent liabilities profile will remain adequate despite future debt issuances."
Mobile County is situated in southwestern Alabama along the Gulf Coast. Economic activity is centered in the city of Mobile, which accounts for about half the county's population. The county's economic base is considered broad and diversified across several sectors.
