Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on Mountain Lake, Minn.'s general obligation bonds.
At the same time, it assigned its A-plus long-term rating to the city's series 2015A unlimited-tax GO refunding bonds. The outlook is stable.
"The rating action is based on our view of the city's strengthened property tax base and increased available fund balance, which is close to 150% of expenditures," said Standard & Poor's credit analyst Benjamin Gallovic.
Officials will use the series 2015A bond proceeds to current refund the city's series 2001 and 2007C GO bonds, and crossover refund its series 2009A GO bonds, all for interest cost savings.
The stable outlook reflects the anticipation that Mountain Lake will maintain very strong budgetary flexibility, with reserves above 75% of expenditures, and very strong liquidity during the two-year outlook horizon.
