S&P Global Ratings raised its long-term rating and underlying rating to 'AA+' from 'AA' on Cleveland's limited-tax general obligation (GO) bonds, reflecting an additional first-lien pledge of the city's 2.5% income tax; subordinate-lien income tax bonds, reflecting a junior-lien pledge of the city's income tax receipts subordinated only to the city's GO bonds; and subordinate-lien unrestricted income tax bonds (police and fire pension bonds). At the same time, we assigned our 'AA+' long-term rating to Cleveland's series 2017A subordinate-lien income tax improvement and refunding bonds. The outlook is stable. The rating action reflects our view of the city's steady growth in income tax revenue, which provides very strong debt service coverage, as well as its successful passage of an income
