...Standard & Poor's Ratings Services has assigned its '##+' long-term rating to Forest Lake, Minn's series 2014A general obligation (GO) tax abatement bonds. At the same time, we affirmed our '##+' long-term rating on the city's outstanding debt. We also affirmed our '##' rating on the Forest Lake Economic Development Authority's (EDA) facility lease revenue bonds. The outlook on all ratings is stable. A pledge of the city's full faith credit and resources and an agreement to levy ad valorem property taxes without limitation as to rate of amount secure the series 2014A bonds. It is our understanding that proceeds of the series 2014A will be used to finance a portion of a proposed YMCA facility in the city. The rating on the lease revenue bonds is notched one off of the GO rating, reflecting the risk in the city's covenant to appropriate annual debt service payments. Forest Lake's rental payments under a lease agreement with the EDA secure the lease revenue bonds. The long-term rating reflects...
