Moody's Investors Service said it has assigned an A1 rating to the city of Olean, N.Y.'s $9.25 million public improvement serial bonds, 2012, and upgraded from A2 to A1 the underlying rating on the city's $25.6 million in outstanding parity debt.
The bonds are secured by a general obligation pledge as limited by the Property Tax Cap -- Legislation (Chapter 97(Part A) of the Laws of the State of New York, 2011). Proceeds will permanently finance bond anticipation notes ($9.5 million) issued in 2008 and 2010 to fund various water and sewer improvements.
The upgrade reflects improved financial position, including four consecutive surpluses. The rating also reflects the city's modest tax base and average debt burden.