Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to AA-plus from AA on Vernon Hills, Ill.'s general obligation debt outstanding.
The outlook is stable.
"The raised ratings reflect our opinion of the village's conservative policies and practices, along with increased revenue-raising flexibility, which have enabled the village to maintain a very strong level of reserves throughout a difficult revenue climate," said Standard & Poor's credit analyst Kathryn Clayton.
The ratings also reflect the village's: participation in the deep and diverse Chicago metropolitan area economy and diverse employment opportunities, both within the village and in neighboring communities in the northwestern suburbs; very strong income indicators and extremely strong market value per capita; and revenue-raising flexibility achieved with home rule status.
The stable outlook reflects the anticipation that the village's reserve levels will remain extremely strong due to its good financial management practices.
The rating agency does not anticipate changing the ratings within the two-year outlook time frame because it anticipates that the village will continue making the budget adjustments it deems necessary to maintain its very strong level of reserves. The village's access to employment opportunities in the Chicago metropolitan area and surrounding areas also lends stability to the ratings.
