CHICAGO -- St. Louis' parking revenue bonds enjoyed a one-notch Standard & Poor's update after a recent rate increase.

The rating agency upgrade the subordinate lien to A-minus from BBB-plus and the senior lien to A from A-minus Dec. 3.

The outlook is stable.

"The upgrade is a result of strong historical financial metrics and a recent rate increase that will preserve the future financial metrics and that demonstrates the city's willingness to raise rates," said Standard & Poor's analyst Mary Ellen Wriedt.

The credit benefits from a diverse pledge of revenues that come from collections on 12,200 spaces in five garages, three surface lots, and parking meters. Debt service coverage and liquidity remain strong and the treasurer has flexibility to raise rates without restrictions or a need for approval from the board of aldermen. The city parking commission is not planning any new near term borrowing.

St. Louis has approximately $62 million in parking revenue bonds outstanding.

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