Standard & Poor's Ratings Services said it raised its long-term and underlying rating on Newport News, Va.'s general obligation bonds outstanding one notch to AA-plus from AA, and the rating on the city's appropriation-backed obligations to AA from AA-minus.
The outlook on all ratings is stable.
"The upgrade is based on our view of the city's resilience during the economic downturn despite its concentration in the manufacturing sector, and its continued progress in meeting its full pension obligations," said Standard & Poor's credit analyst Lindsay Wilhelm.
Standard & Poor's also assigned its AA-plus long-term rating and stable outlook to the city's series 2014A tax-exempt GO general improvement and refunding bonds; series 2014A tax-exempt GO water refunding bonds; and series 2014B taxable GO refunding bonds.
The series 2014 bonds are secured by the city's full faith, credit, and unlimited tax pledge for repayment. Officials plan to use proceeds to provide approximately $45 million in new money to fund its capital improvement plan, and to refund GO bonds outstanding for purposes of interest rate savings over the life of the bonds.
