Standard & Poor's Ratings Services said it raised its rating on Sewickley Borough, Pa.'s general obligation debt one notch to AA from AA-minus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the borough's available fund balance increase to a level it no longer considers nominally low.
At the same time, the rating service assigned its AA rating and stable outlook to the borough's $10 million series 2015 GO refunding bonds.
"Assuming all other factors remain stable or improve, we could raise the rating if budgetary flexibility were to improve," said Standard & Poor's credit analyst Stephen Doyle. "We, however, could lower the rating if budgetary performance were to deteriorate, resulting in a decrease in reserves to a level we consider nominally low."
The borough's full-faith-and-credit pledge secures the bonds. Officials intend to use series 2015 bond proceeds to refund the borough's series 2011A, 2011B, and 2011C bonds.
