S&P Global Ratings assigned its 'AAA' rating to Ann Arbor, Mich.'s roughly $12 million series 2025 limited-tax general obligation (GO) capital improvement bonds. We also affirmed our 'AAA' rating on the city's GO debt outstanding. The outlook is stable. The rating reflects the application of our criteria, "Methodology For Rating U.S. Governments," Sept. 9, 2024, on RatingsDirect. The city's limited-tax full-faith-and-credit pledge and agreement to levy ad valorem property taxes, within statutory and constitutional tax limitations, secure the bonds. Series 2025 bond proceeds will be used to finance the construction of a new fire station. We rate the city's limited-tax GO debt on par with our view of its general creditworthiness due to the fungibility of resources available for debt
