Government

Standard and Poor’s Affirms County’s Top Bond Rating

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One of the nation’s major credit rating agencies has once again issued the County of San Diego its highest possible rating for general creditworthiness: AAA.

Standard & Poor’s this month affirmed the rating using new criteria designed to increase the transparency, rigor and specificity of the process.

Another goal was to enhance the “comparability of our ratings through a clear, coherent and globally consistent criteria framework,” according to a recent S&P report.

This isn’t the first time S&P has issued its highest rating to the County. The agency has consistently given AAA ratings to the County for general creditworthiness since Sept. 2008, most recently in May of this year.

The ratings reflect the County’s ongoing financial strength and help significantly save money when it comes to borrowing.

“Everyone benefits from these ratings,” said Board of Supervisors Chairman Greg Cox. “The County, and therefore taxpayers, save tremendous amounts of money, which helps us get critical infrastructure projects done for less, and we can continue providing the range of quality services we all rely on. It’s a testament to our disciplined fiscal policies.”

In releasing its findings, S&P described the County’s economy as “very strong,” “bolstered by a sizable, deep and diverse economy with a favorable location that exhibits relatively stable assessed valuation (AV), coupled with strong wealth,” according to a summary.

Assistant Chief Administrative Officer/Chief Operating Officer Donald F. Steuer said that one of the most important elements in determining credit ratings is the assessment of an agency’s financial management.

“Our AAA rating is not just a symbol of our creditworthiness in the markets,” he said. “More importantly, it is a reflection of our sound financial management practices as a government agency.”

Standard & Poor’s found the County’s budgetary flexibility and performance to be robust, thanks to careful and conservative spending. It praised the County’s financial management practices, citing the County’s multiyear financial planning; capital plan that spans five years and fully identifies potential sources and uses of funds; and conservative assumptions about revenue growth and less conservative assumptions about expenditure growth.

“We do not expect to change the rating within the outlook’s two-year horizon based on our belief (that) management will likely maintain good finances and reserves,” the S&P report stated.