Standard & Poor's raised its long-term rating and underlying rating on Preston, Conn.'s general obligation bonds to AA-minus from A-plus. It also assigned its AA- long-term rating to the town's GO bonds, issue of 2013 and its SP-1-plus short-term rating to the town's GO bond anticipation notes.

Its outlook on all the ratings is stable.

"The higher ratings reflect conservative budgeting practices that have bolstered reserves to a level we consider very strong," said credit analyst Hilary Sutton.

The short-term note rating reflects the rating agency's criteria for evaluating and rating BANs.

The long-term rating reflects S&P's view of Preston's property tax base that declined by a 16.3% year over year in fiscal 2014 due to a revaluation, but retained its strong incomes and extremely strong wealth; maintenance of financial strength; limited pension and other post-employment benefit liabilities; and low debt burden, coupled with rapid amortization.

Preston lies just outside Norwich in southeastern Connecticut.

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