OREANDA-NEWS. S&P Global Ratings raised its rating on Miami's general obligation (GO) bonds to 'AA-' from 'A+' and its rating on the city's non-ad valorem bonds to 'A+' from 'A'. The outlook is stable.

S&P Global Ratings also raised its long-term rating and underlying rating (SPUR) two notches, to 'AA-' from 'A' on Miami's series 2007A, 2007B, and 2009 limited ad valorem tax bonds and removed the rating from CreditWatch, where it had been placed with positive implications on May 12, 2016. The outlook is stable.

"The GO debt upgrade reflects Miami's enhanced financial flexibility stemming from the ongoing economic recovery as well as implementation of a more robust debt policy, which resulted in a revision to our Financial Management Assessment score," said S&P Global Ratings credit analyst Hilary Sutton.

The upgrade of the limited ad valorem tax bonds reflects our reclassification of these bonds under our "Limited-Tax GO Debt" criteria published Jan. 10, 2002. The bonds are secured by a pledge of 1.218 mills on all taxable property in the city and an additional pledge of non-ad valorem revenues equal to 10% of maximum annual debt service (MADS) to cover debt service requirements. The city believes the revenues derived from ad valorem taxes collected at a millage rate of up to 1.218 mills will be sufficient to pay debt service on the bonds. As a result, we are not making a rating distinction between the city's GO debt rating and limited-tax debt rating.

The city's GO bonds are secured by unlimited ad valorem taxes levied on taxable city properties, while the non-ad valorem bonds are secured by legally available non-ad valorem revenues. Legally available non-ad valorem revenue totaled $221.6 million in fiscal 2015, having increased 6.7% year-over-year and providing a healthy 8x MADS coverage.