Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to A-minus from BBB-plus on New Orleans, La.'s general obligation debt.
At the same time, Standard & Poor's assigned its A-minus long-term rating to the city's series 2015A taxable public improvement bonds. The outlook is positive.
"The rating action reflects our view of the city's improved budgetary flexibility and liquidity in fiscal 2013 coupled with ongoing commercial and residential development, which are expanding the city's property and sales tax bases," said Standard & Poor's credit analyst Brian Marshall.
Officials will use the series 2015A bond proceeds to fund improvements for streets, parks and recreation facilities, libraries, and other public city facilities.
The positive outlook reflects the growth of New Orleans' tax base and economy coupled with significantly improved budgetary flexibility.
