OREANDA-NEWS. S&P Global Ratings raised its long-term rating on Pipestone, Minn.'s general obligation (GO) debt to 'AA-' from 'A+'. "The rating action reflects our opinion of the city's improved economic indicators, which include lessening population decline, rising income levels, and an expanding tax base," said S&P Global Ratings credit analyst Melissa Brown. "In addition, we believe other credit characteristics, including the city's strong finances and good financial management policies, will likely improve or remain unchanged over the two-year outlook period."At the same time S&P Global Ratings assigned its 'AA-' rating to the city's $3.85 million series 2016A GO bonds. The outlook on all ratings is stable. A pledge of the city's full faith, credit, and taxing powers to levy ad valorem property taxes without limitation on the rate or amount secures the bonds. Moreover, the city pledges various other revenues for debt service within the series 2016A issuance. Officials also pledge: Net revenues of the storm sewer system for the improvement portion of the bonds;Special assessments against benefitted properties for the 2010A refunding portion of the bonds;Sanitary sewer, storm sewer, and water utility revenues along with special assessments against benefitted properties for the 2007B refunding portion of the bonds; andNet revenues of the sanitary sewer system for the series 2009A refunding portion of the bonds. Despite the additional revenue streams, the rating service rates to the city's GO pledge since the additional pledged revenues do not include legal components that meet S&P Global Ratings' key criteria for rating an additional revenue stream. Some of the city's existing GO debt also includes similar additional revenue pledges, and in those instances, the rating service also rates to the city's GO pledge for the same reason. S&P Global Ratings understands that bond proceeds for the series 2016A issuance will be used to finance various improvements within the city. In addition, bond proceeds will be used to refund various bonds for interest cost savings. The refunding portions are as follows: A current refunding of the 2017 to 2023 maturities of the city's series 2007B bonds; An advanced crossover refunding of the 2018 through 2024 maturities of the city's series 2008A GO improvement bonds. An escrow account will be established and interest will be paid on the series 2016B bonds through the call date of Feb. 1, 2017. The city will continue to pay debt service on the series 2008A bonds until the call date. The city's GO pledge applies to the series 2016A bonds at the closing date of sale; An advanced crossover refunding of the 2019 through 2024 maturities of the city's series 2009A sanitary sewer revenue refunding bonds. An escrow account will be established and interest will be paid on the series 2016B bonds through the call date of Feb. 1, 2017. The city will continue to pay debt service on the series 2009A bonds until the call date. The city's GO pledge applies to the series 2016A bonds at the closing date of sale; andAn advanced crossover refunding of the 2022 through 2026 maturities of the city's series 2010A GO improvement bonds. An escrow account will be established and interest will be paid on the series 2016B bonds through the call date of Feb. 1, 2017. The city will continue to pay debt service on the series 2010A bonds until the call date. The city's GO pledge applies to the series 2016A bonds at the closing date of sale. RELATED CRITERIA AND RESEARCH