LOS ANGELES — Standard & Poor's upgraded Reno, Nev.'s general obligation limited tax sewer refunding bonds to AA-minus from A-plus.
The outlook is stable.
"We are raising the rating based on the sewer system's improved financial profile, demonstrated through strong historical debt service coverage and substantial liquidity metrics," said analyst Tim Tung.
Factors in the ratings boost included a service area with adequate income levels, the growing, primarily residential, customer base, and affordable sewer rates following consistent annual increases since fiscal year 2006.
Reno also plans automatic annual inflation-based adjustments that are approved for future years.
Reno has strong and improved debt service coverage, which S&P said it anticipates will be maintained going forward.
Moody's Investors Service in July affirmed its A1 rating on the city's general fund-backed debt.
