S&P Global Ratings assigned its 'AA' long-term rating to North Mankato, Minn.'s series 2016A general obligation (GO) bonds. We also affirmed our 'AA' rating on the city's outstanding GO debt. The outlook is stable. The series 2016A bonds are secured by 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 or amount. Proceeds will be used to finance street, sewer and water improvements, and the purchase of a fire truck. The bonds are payable from net revenues of the city's water and sanitary sewer systems, special assessments and tax levies; however, the rating is based on the unlimited ad valorem tax pledge, which we view as the stronger security.
