OREANDA-NEWS. S&P Global Ratings assigned its 'A-' long-term rating to Atmore, Ala.'s series 2016 general obligation refunding warrants. The outlook is stable.

"The long-term rating reflects what we view as Atmore's very weak economy, adequate management, adequate budgetary performance, weak budgetary flexibility, very strong liquidity, strong debt and contingent liability position, and strong institutional framework score," said S&P Global Ratings credit analyst Ann Richardson.

Proceeds will refund a portion of the city's existing debt for up-front interest rate savings.

Atmore is about 50 miles northeast of Mobile, Ala., and about 50 miles north of Pensacola, Fla. The area is largely rural and agricultural, with a focus on the timber industry.

The stable outlook reflects S&P Global Ratings' opinion that the rating will not change over the two-year outlook horizon. The outlook also reflects our expectation that management will continue to maintain at least adequate budgetary performance and that reserves will remain what we consider nominally low. In addition, we base the outlook on our view that the local economy will continue to experience stable economic growth.

We would consider a higher rating if key economic indicators were to improve to levels we considered more comparable with higher rated peers, or if reserve levels stay at levels above $500,000 and there was sustained improvement in budgetary performance.

We could lower the rating if the city's budgetary flexibility deteriorated to levels we viewed as very weak, and there were a prolonged period of weak budgetary performance.