Standard & Poor's Ratings Services said it raised its underlying rating to AA-minus from A-plus on Zumbrota, Minn.'s series 2009A general obligation sewer and utility revenue refunding bonds.
Processing Content
The outlook is stable.
"The upgrade reflects improved budgetary flexibility along with continued strong budgetary performance," said Standard & Poor's credit analyst Errol Arne.
A pledge of the city's full-faith-credit-and-resources and an agreement to levy ad valorem property taxes without limitation as to rate or amount secure the series 2009A bonds. For series 2009A, the city will pledge sewer and water utility revenues. The rating is based on the city's full-faith-credit-and-resource unlimited-tax GO pledge, which is the stronger pledge.
