Standard & Poor's Ratings Services said it raised its long-term rating on South Portland, Maine's outstanding general obligation bonds one notch, to AAA from AA-plus.
At the same time, Standard & Poor's assigned its AAA long-term rating to the city's 2014 GO series A bonds and 2014 GO refunding bonds series B. The outlook is stable.
"The upgrade is based on a change in the city's Financial Management Assessment to strong from good," said Standard & Poor's credit analyst Ruth Ducret.
The 2014 series A bonds are general obligations of the city, for which it has pledged its full faith and credit. The 2014 series B bonds are federally taxable and are payable from ad valorem taxes that are subject to limitation under the state's property tax levy limit. Series A bond proceeds will be used to fund additions to and renovations of South Portland High School. Series B bond proceeds will be used to refund the outstanding 2004 bonds for present value savings.
