OREANDA-NEWS. S&P Global Ratings raised its long-term rating on Sumiton, Ala.'s general obligation (GO) warrants to 'A+' from 'A'. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to Sumiton's series 2016 GO warrants. The outlook on all ratings is stable.

"The upgrade reflects our view of the city's improved available fund balance with reserves totaling more than 60% of expenditures, improved debt levels, and improved income levels," said S&P Global Ratings credit analyst Ann Richardson.

The rating reflects our view of the city's very strong budgetary flexibility and consistently balanced operations, offset by vulnerable financial management policies and practices.

We note that the rating could be pressured downward if structural performance deteriorates such that we believe the city will not continue to see at least balanced performance on an ongoing basis across both the general fund and total governmental funds. Our local government GO criteria caps a rating at no higher than 'A' for weak management factor scoring, which could occur with a vulnerable Financial Management Assessment paired with an unbalanced budget.

Proceeds from the sale of the warrants will be used to refund a portion of the city's existing debt for interest rate savings and to fund construction of a new fire station.