Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to AA-minus from A-plus on Richmond, Texas' parity general obligation bonds.
At the same time, Standard & Poor's assigned its AA-minus long-term rating to the city's series 2015 combination tax and revenue certificates of obligation.
The outlook is stable for all ratings.
"The upgrade reflects the improvement in the city's budgetary flexibility to levels we consider very strong from strong," said Standard & Poor's credit analyst Sarah Smaardyk. "In addition, the upgrade reflects the formalization of financial policies, providing additional strength to the city's financial practices."
The stable outlook reflects the view that the city will likely sustain its very strong budgetary flexibility and liquidity and benefit from a growing tax base as well as growth in the Houston Metropolitan Statistical Area.
