VALPARAISO | Even with economic malaise not seen since the 1930s, Valparaiso's credit is good and improving.

The city announced last week that Standard & Poor's, the financial services company that provides international analyses of stocks, bonds and stock market indices, gave the city an "A-plus" rating on its bonds, an improvement from its previous "A" rating. Only the most affluent communities can earn a higher rating than Valparaiso's.

"We looked at Valparaiso's finances, the current economy, plus the city's ability to repay debt, and determined the city should be moved into the more favorable 'A-plus' category," said John Kenward, S&P's senior credit analyst. "Valparaiso's improved rating is particularly impressive this year in light of Indiana's disruption in property taxes."

The enhanced rating means that, if the city needs to borrow money in the future, the bonds should be easier to sell to investors and the city should receive a lower interest rate, said Karl Cender, the city's financial consultant. Cender said another rating would be done at the time the city seeks a bond issue.

"The most gratifying thing is that our conservative approach has prepared us for the current economic downturn, and we're in a much better position than many other Indiana cities," Clerk-Treasurer Sharon Swihart said.

"Our financial picture and level of service remain strong."