Standard & Poor’s boosted the rating on debt held by the southeast Indiana town of St. John three notches to A from BBB as the town prepares to sell $2.6 million of waterworks revenue bonds. The outlook is stable.

Located in Lake County about 35 miles from Chicago, St. John has seen its population increase by 47% since 2000 to just under 13,000.  The growth is fueled by the town’s proximity to Chicago, said analysts.

Proceeds from the waterworks bonds will be used to build a well field and a water treatment plant.

“The upgrade reflects what we believe to be strong improvement in coverage levels following a rate increase in 2007 and the accumulation of strong liquidity levels,” analyst Jeffrey Panger wrote in a release on the upgrade. He said Standard & Poor’s expects the town’s finances to continue to be strong for the next five years.

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