Los Angeles County’s long-term credit ratings reached their highest levels in a decade after Moody’s this week upgraded the county from Aa2 to Aa1, potentially saving the county millions of dollars in interest expenses.
In announcing the move, Moody’s cited the county’s “strong and stable financial position,” along with a “strong management team that has positioned the county well to address ongoing challenges.”
The upgrade came after county executives met in New York with the three major credit-rating agencies to detail the significant steps the Board of Supervisors and other county leaders had taken to build financial reserves, stabilize the Department of Health Services and pre-fund long-term liabilities.
In addition to the upgrade in long-term credit ratings, the big three rating agencies— Moody’s, Fitch and S&P — assigned the highest short-term rating to the county’s $800 million Tax and Revenue Anticipation Note issuance.
The county, which has a budget of approximately $30 billion, has long been recognized for its fiscally responsible practices. It weathered the Great Recession of 2008, for example, without substantial service cutbacks or layoffs.
Moody’s, in explaining this week’s upgrade, noted the county’s “healthy cash and reserve levels, and low debt burden.”
At the same time, the county has invested significantly in areas targeted by the Board of Supervisors as priorities, including homelessness, child protection and criminal justice reform.
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