Standard&Poor's Ratings Services assigned its 'A-' rating to Redlands, Calif.'s $25.6 million taxable pension obligation bonds (POBs). In addition, Standard&Poor's affirmed its 'A' underlying rating (SPUR) on the city's existing GO bonds and its 'A-' SPUR on the city's lease revenue certificates of participation (COPs). The 'A' GO rating is based on the general credit characteristics of Redlands, which include: Continued strength in the local economic base, with annual property tax base growth averaging more than 9% during the past five years; Slightly above-average income indicators and low unemployment; and Sufficient reserves at $11.8 million or 9.2% of expenditures. Mitigating factors to the rating include several years of general fund deficits, which have compromised the city's
