For real estate investors, the improved ratings are considered good news, area brokers tell GlobeSt.com.

The city has rallied from November 1996 when elected officials declared a financial state of emergency with a project accumulated deficit of $68 million or 25% of the budget for 1997.

"An improved economic climate has aided the city's return to fiscal stability, as has revenue diversification," S&P credit analyst Robin Prunty says in a prepared statement.

Among the diversified categories are a fire service fee and a parking surcharge of 20%, with a requirement that it be used to roll back property tax rates and establish reserves.

"Prior to these revenue-diversification initiatives, the city was operating at its 10-mill property tax limit," Prunty says. The property tax rate, now at nine mills, is at its lowest level in 52 years.

Miami has a balanced four-year plan through 2006 with reserves projected to grow to $120 million by fiscal 2006, the analyst says.

Miami's positive ranking "reflects the city's improved financial reserve levels and liquidity which are expected to increase under the current four-year financial plan," Prunty says.

"An upgrade to the single-A category within the next three years would be warranted if the local economy performs well and budget and management improvements continue, allowing the city to identify and fund capital and operating requirements as part of a multi-year financial plan," the analyst says.

He says "a consistent level of fund balance reserve will also be an important credit consideration."