Moody's Investors Service said it has upgraded to Aa2 from Aa3 the underlying rating on Redwood County, Minn.'s general obligation debt.
Concurrently, Moody's has assigned a Aa2 underlying rating to the county's $5.4 million general obligation bonds, Series 2013A. Moody's has also assigned a Aa2 enhanced rating with a negative outlook to the Series 2013A bonds. Post-sale, the county will have $8.7 million of general obligation debt
The bonds are secured by the county's general obligation unlimited tax pledge. Bond proceeds will be used to remodel a law enforcement center and construct a replacement solid waste recycling facility.
The Aa2 underlying rating reflects the county's large, rapidly appreciating and mainly agricultural tax base located in south central Minnesota (general obligation Aa1/negative outlook); well-managed financial operations bolstered by substantial reserves; and modestly sized debt burden.
The Aa2 enhanced rating and negative outlook is based on the additional security provided by the State of Minnesota's Credit Enhancement Program (MCE) for cities and counties.