Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on St. Ignace Building Authority, Mich.'s series 2011 general obligation bonds issued for the city of St. Ignace.
The outlook is stable.
"The upgrade is based on improved budgetary flexibility due to very strong budgetary performance," said Standard & Poor's credit analyst Errol Arne.
A pledge of the city's full-faith-credit-and-resources and an agreement to levy ad valorem property taxes within state limitations secure the 2011 bonds.
The stable outlook reflects the view that the city will maintain its very strong budget flexibility, liquidity, and debt profile. The rating agency does not expect to revise the rating within the two-year outlook period but if the unemployment rate falls below 10% and if the market value per capita improves, holding all else equal, it could raise the rating.
Conversely, if the budgetary performance and/or the debt profile become adequate or weak, the rating could be pressured, although it doesn't expect this to occur within the two-year outlook period.
