Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to AA from AA-minus on Hazelwood, Mo.'s general obligation bonds.
At the same time, it raised its long-term rating to AA-minus from A-plus on the city's appropriation-backed debt. It also assigned its AA long-term rating to the city's series 2015 unlimited-tax GO refunding bonds and its AA-minus long-term rating to the city's series 2015 refunding certificates of participation. The outlook is stable.
"The rating action is based on our view of the city's improved budgetary performance following the implementation of various structural budget adjustments, including voter approval of two new sales tax levies and various expenditure reductions," said Standard & Poor's credit analyst Benjamin Gallovic. "We believe that these adjustments are sustainable, which should allow the city to maintain very strong reserves and liquidity during the next two years."
The city will use the series 2015 GO bond proceeds to advance refund its series 2007 GO bonds for interest cost savings, and the COP proceeds to advance refund its series 2008 COPs for interest cost savings.
The stable outlook reflects the anticipation that Hazelwood will maintain very strong budgetary flexibility and liquidity during the two-year outlook horizon.
