Standard & Poor’s last week raised its underlying rating on the Montara Sanitary District’s general obligation debt one notch, to AA-minus from A-plus.

The rating change reflecting the agency’s view of the continued strength of the California utility’s property tax base and the overall area economy.

The rating outlook is stable.

In addition, analysts said the rating reflects Standard & Poor’s opinion of the district’s predominantly residential economic base, which includes above-average wealth, good annual assessed valuation growth, and good financial operations with strong liquidity.

The district’s needs also includes additional capital projects, which might necessitate additional rate increases.

“We think the district will continue its good financial performance while managing operations and its capital plan,” according to Standard & Poor’s analyst Lisa Schroeer.

“We also believe the district’s strong tax base and access to the Bay Area economy support a stable customer and revenue base,” she wrote.

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