Standard & Poor's Ratings Services said it raised its long-term rating on Orange, Conn.'s general obligation (GO) bonds to AAA from AA-plus.
The outlook is stable.
"The higher rating reflects the town's good financial practices and maintenance of strong budgetary performance and flexibility," said Standard & Poor's credit analyst Apple Lo.
At the same time, Standard & Poor's assigned its AAA long-term rating to the town's series 2014 GO bonds. The outlook on the long-term GO debt is stable.
In addition, Standard & Poor's assigned its SP-1-plus short-term rating to Orange's series 2014 GO bond anticipation notes (BANs), payable July 20, 2015.
"The short-term rating reflects our view that the town maintains a very strong ability to pay principal and interest when the notes come due," said Lo. Orange maintains a low market risk profile as it maintains strong legal authority to issue long-term debt to take out the notes and is a frequent issuer that regularly provides ongoing disclosure to market participants.
A pledge of the city's full faith credit secures the bonds and notes. Proceeds will be used to finance various capital improvement projects.
