OREANDA-NEWS. S&P Global Ratings raised its long-term rating to 'AA-' from 'A+' on Cottonwood, Ariz.'s series 2015 pledged revenue obligations. At the same time, S&P Global Ratings assigned its 'AA-' long-term rating to the city's series 2016 pledged revenue refunding obligations. The outlook is stable.

"The raised rating reflects our view of the new debt service schedule as a result of the series 2016 refunding, increased debt service coverage, and a track record of pledged revenue growth," said S&P Global Ratings credit analyst Cody Nelson.

The series 2016 bonds will refund, in entirety, the city's loan agreement with the Greater Arizona Development Authority (GADA) that represented a senior-lien on the state-shared sales and income tax revenues a parity lien on local limited sales tax revenues. The result is a parity senior lien debt service structure for the series 2015 and 2016 obligations.

Cottonwood is located 100 miles northwest of Phoenix in the Verde Valley. The local population in the city is about 12,455.