Standard&Poor's Ratings Services assigned its 'A+' long-term rating, and stable outlook, to Mount Vernon, Iowa's, series 2009B general obligation (GO) capital loan notes and affirmed its 'A+' underlying rating (SPUR), with a stable outlook, on the city's parity debt. In our opinion, the ratings reflect the city's: Access to diverse employment opportunities throughout the Cedar Rapids, Iowa and Iowa City, Iowa economic areas; Good income and adequate wealth levels; and Sound financial operations supported by strong cash reserves. In our opinion, the city's moderately high overall debt burden as a percent of market valuation is a limiting credit consideration. Officials are planning to use note proceeds to fund expansions and upgrades at the city's water and sewer systems.
