OREANDA-NEWS. S&P Global Ratings raised its long-term rating to 'AA' from 'AA-' on University Place, Wash.'s outstanding general obligation bonds. In addition, S&P Global Ratings assigned its 'AA' rating to the city's series 2016 limited-tax general obligation (LTGO) bonds. The outlook is stable.

"The rating action is based on our view of the improvement in the city's ability to manage its expenditures and revenue, resulting in improvements to our assessment of budgetary performance and flexibility," said S&P Global Ratings credit analyst Benjamin Geare. "To a lesser extent, the rating action also reflects our assessment of the city's slightly increased nonvoted debt capacity on its liquidity."

The rating further reflects our opinion of the city's:

Strong economy, Very strong management, Strong budgetary performance, Very strong budgetary flexibility, Very strong liquidity, Very weak debt and contingent liability position, and Adequate institutional framework score. We understand that bond proceeds will be used to refund a portion of the city's outstanding LTGO bonds.