S&P Global Rating raised its long-term rating to 'AAA' from 'AA+' on Ann Arbor, Mich.'s limited-tax general obligation (LTGO) debt. At the same time, we assigned our 'AAA' rating to the city's $9.0 million 2024 LTGO capital improvement bonds. The outlook is stable. The upgrade reflects Ann Arbor's trend of robust operating performance and strengthened financial position that are commensurate with the higher rating. Continued strong economic development also help mitigate risks from tax levy caps and the relatively large amount of tax-exempt property within the city. The city's LTGO bonds are secured by its limited ad valorem tax GO pledge. We rate the LTGO debt at the same level as the city's general creditworthiness, given that ad valorem taxes
