Standard & Poor's Ratings Services said it raised its rating on Universal City, Texas' general obligation debt two notches to AA-plus from AA-minus.
The outlook is stable.
At the same time, Standard & Poor's assigned its AA-plus rating and stable outlook to the city's series 2014 combination tax and revenue certificates of obligation.
"The upgrade is based on the city's history of maintaining very strong finances and strong management," said Standard & Poor's credit analyst Jim Tchou.
Ad valorem taxes levied against all taxable property within the city secure the certificates. The certificates are additionally secured by a lien on and pledge of the surplus revenues of the city's water and sewer system, solely to comply with a state law that permits the certificates to be sold for cash.
Universal City is a residential community located on the Bexar-Guadalupe County line, northeast of San Antonio and adjacent to the Randolph Air Force Base.
