Moody's Investors Service said it has upgraded to A2 from A3 the rating on city of Tampa, Fla., solid waste enterprise's $101.1 million of outstanding rated debt.
The outlook is stable.
The A2 rating is supported by strong legal flow control, contracts for facility operations and demonstrated willingness to raise rates to improve liquidity and coverage ratios.
The stable outlook is based on the ongoing improvement in financial performance through 2013 and the current fiscal year 2014.
The rating also incorporates the future rate hikes, last of which will happen in 2016, and the potential for further improvement in the economic strength of the service area.
Along with the potential savings from operational efficiency measures, the agency expects continued improvement in financial performance over the next 2-3 years.
