S&P Global Ratings assigned its'AA-'rating to Sleepy Eye , Minnesota's $1.02 million series 2026A general obligation (GO) tax abatement bonds. At the same time, S&P Global Ratings affirmed its'AA-'rating on the city's existing debt. The outlook is stable. The proposed issuance, and existing debt, are general obligations, secured by the unlimited ad valorem tax pledge. The series 2026A bonds are payable from tax abatement levies and ad valorem taxes and will be used to finance pool repairs, bike trail resurfacing, and facility equipment. The rating reflects the city's unlimited taxing flexibility and healthy reserve position, which we expect will allow the city to manage rising expenditures. However, these strengths are offset by a relatively high debt
