Standard & Poor's Rating Services raised its long-term and underlying ratings on Terrebonne Parish, La.'s general obligation bonds to AA from AA-minus.
"We base the upgrade on improved economic conditions," said Standard & Poor's credit analyst Ann Richardson.
Standard & Poor's also assigned its AA long-term rating to the parish's series 2015 refunding bonds. The outlook on all ratings is stable.
The series 2015 bonds are secured by the parish's unlimited ad valorem tax on all taxable property within the parish. The bonds are being issued for the purpose of refunding a portion of the parish's existing GO bonds for interest rate savings.
The existing series 1998B bonds are secured by a pledge of the Terrebonne Parish Consolidated Government that, through an approved ordinance, has obligated itself to budget annually a sum of money sufficient to pay debt service on the aforementioned issuance. The ordinance approving the original issuance also includes a covenant to levy taxes, as per state statutes that govern all parishes, at a rate sufficient to pay debt service on the series 1998B issue. Consequently, S&P views the security as a full faith and credit pledge of the consolidated government and have not notched the rating from its GO rating on Terrebonne Parish.
