OREANDA-NEWS. S&P Global Ratings assigned its 'AA' long-term rating to Alabama's series 2016C general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on the state's GO bonds outstanding and 'AA-' long-term rating on the state's appropriation-secured debt. The outlook is stable.

Series 2016C bond proceeds will advance-refund certain GO debt outstanding to lower debt service requirements without extension of original maturities.

"The ratings reflect our opinion of such factors as the state's large, concentrated economic base, commitment to repayment of previously drawn 'rainy day' reserve funds, dedicated revenue streams for capital projects and debt service, and low GO debt burden," said S&P Global Ratings credit analyst Nora Wittstruck.

The stable outlook reflects our view of the state's diminished reliance on one-time revenue in fiscal 2016 to obtain structural budget balance and ongoing commitment to repay reserves after depletion during the Great Recession.