NEW YORK - Standard & Poor's Ratings Services said it raised its long-term rating on South Portland, Maine's outstanding general obligation debt to AA-plus from AA. In addition, Standard & Poor's assigned its AA-plus long-term rating to the city's series 2010 general obligation bonds. The outlook is stable.
The AA-plus rating reflects the city's robust economy, diverse tax base, and its sound financial position, which has been maintained at strong levels over various economic cycles.
Additional factors in support of the rating include an extremely strong market value per capita and good median household income levels, good management practices, and low debt burden and modest capital needs.
"The stable outlook reflects the city's sound economic position, which we believe should enable property taxes revenues to remain a stable source of general fund revenue," said Standard & Poor's credit analyst Victor Medeiros. "We also expect the city's financial position will remain sound, aided by the city's formal fund balance policy, as well as its demonstrated record of making the appropriate budgetary adjustment to maintain structural balance. We also believe that sound debt ratios should remain low to moderate, given the city's identified capital needs."
South Portland (estimated population 23,320) is located just south of Portland, Maine, and about 100 miles north of Boston, Mass. In addition to access to Portland, the city itself has a sizable employment base, with a substantial commercial and industrial sector.
