Standard & Poor’s said it has raised its ratings on Pleasant Prairie, Wis.’ general obligation debt to AA-minus from A-plus, due to consistently solid financial operations. The outlook is stable.
At the same time, the agency assigned its AA-minus rating to the village’s $12.3 million GO promissory notes, Series 2008A and 2008B.
Analysts said the ratings reflect the village’s participation in the Chicago and Milwaukee area’s deep and diverse regional economies, above-average wealth and income levels, and continued commercial and industrial growth from the village’s tax increment district.
A somewhat high per capita debt level limits the credit strengths above.
“We expect that the village will continue to maintain balanced operations and at least adequate reserve levels for the rating,” said Standard & Poor’s credit analyst Steffanie Dyer. “We will continue to monitor management’s ability to offset a large portion of its debt service with tax increment revenues.”
Pleasant Prairie’s location on the Wisconsin-Illinois border, allowing residents access to the greater Chicago employment base, lends stability to the rating.
Securing payment of debt service on both series 2008 promissory notes is the village’s unlimited-tax GO pledge. The village will use proceeds of the series 2008A notes for improvements within the village’s tax increment district No. 2 and proceeds of the Series 2008B notes for various capital improvements.