Standard&Poor's Ratings Services has assigned its 'AA' long-term rating and stable outlook to Portage, Mich.'s series 2011 limited-tax general obligation (GO) capital improvement bonds. At the same time, Standard&Poor's affirmed its 'AA' long-term rating, underlying rating (SPUR), and stable outlook on the city's existing GO debt. In our opinion, the rating reflects the city's: Access to, and participation in, the diverse Kalamazoo, Mich. area economy; Very strong wealth and good income indicators coupled with below-average unemployment rates; and Sound financial profile, characterized by consistently strong general fund reserve levels. The city's elevated debt service carrying charges, and projected use of reserves for operational purposes in fiscal 2012 are, in our opinion, limiting credit considerations. The city's
