A pair of Michigan towns won upgrades from Standard & Poor’s last week in recognition of stronger financial profiles boosted by tourism.
The agency boosted Pigeon Village’s outstanding general obligation debt three notches to A from BBB. Analysts also upgraded to A-plus from A the limited-tax GOs issued by the town of South Haven and the South Haven Building Authority.
Both municipalities have sizable tourist industries. Pigeon Village is located in Huron County in the “thumb” of the state and enjoys a stable source of property tax revenue and strong employment, analyst Daniel Zuccarello said in a release on the upgrade.
South Haven’s stable economy is anchored by tourism, manufacturing, and health care, and its finances boast very strong reserves, according to analyst Adam Watson. The town’s strengths are offset by the seasonality of the city’s economy as a tourist destination in warmer months. South Haven is located along the eastern coast of Lake Michigan.
