Standard & Poor's Ratings Services said it raised its rating on Waconia, Minn.'s outstanding general obligation bonds to AA-plus from AA.
At the same time, it raised its rating on the city's outstanding lease revenue bonds issued by the Waconia Economic Development Authority to AA from AA-minus.
In addition, it assigned its AA-plus rating to the city's series 2015C GO capital improvement plan bonds. The outlook is stable.
"The upgrade reflects an economy we now consider very strong," said Standard & Poor's credit analyst Blake Yocom, "given local economic indicator improvements and a growing tax base."
The city's unlimited ad valorem tax GO pledge secures the series 2015C bonds. Bond proceeds will be used to full net cash advance refund the city's series 2007C public project lease revenue bonds.
"The rating reflects our assessment of the city's very strong economy, management, budgetary flexibility, and liquidity," said Yocom.
Waconia, with an estimated population of 11,345, is in Carver County.
"The stable outlook reflects our view of Waconia's very strong budgetary flexibility and liquidity, supported by very strong management conditions," added Yocom.
The agency does not anticipate changing the rating during the next two years given its expectation that no credit factors will change significantly and that the city's debt and contingent liability profile will remain weak.
It could raise the ratings if the city's economic indicators strengthen and the special assessments receivable continues to decline while all other credit characteristics remain unchanged or improve, although it views this as unlikely.
Conversely, it could lower the rating if the city's budgetary performance weakens or if its economic indicators reverse their current positive trend.
