Fitch Ratings has raised the County’s long-term issuer credit rating to AAA from AA+, garnering the highest possible credit rating available in the financial markets. Following a series of meetings with ratings agencies, the County also maintained its long-term ratings of AAA and Aa1 from S&P Global Ratings and Moody’s, respectively. This is a significant achievement, as only four other California counties are currently rated AAA by Fitch and S&P, and reflects the County\u2019s broad economic base and fiscal discipline.<\/p>\n
The Fitch credit rating upgrade was provided in connection with the County\u2019s issuance of its 2024-25 $700 million Tax and Revenue Anticipation Notes offering, which priced this week at 3.25%. The three credit agencies assigned the highest short-term ratings to the County\u2019s Notes issuance.<\/p>\n
Higher investment grade ratings allow the County to attract a broader group of bond buyers and price its debt at a lower rate, saving millions of dollars in interest payments on behalf of taxpayers.<\/p>\n
Based on a credit review under Fitch\u2019s new U.S. Public Finance Local Government Rating Criteria, the County received high marks for its economic strength, stable tax base, and strong budgetary management and governance practices, leading to the AAA rating upgrade.<\/p>\n
Government credit ratings are similar to consumer credit scores. The County\u2019s status as a low credit risk means the interest rate it pays to borrow money is lower than it would be otherwise, thus providing flexibility and security in funding vital services for the County\u2019s constituents. When the County obtains a low-interest rate loan, all County residents benefit.<\/p>\n
\u201cOur AAA credit ratings from Fitch and S&P, and Aa1 credit rating from Moody\u2019s demonstrates that Los Angeles County\u2019s fiscal\u00a0health is strong,\u201d said\u00a0Lindsey P. Horvath, Chair of the Los Angeles County Board of Supervisors<\/strong>, who represents the Third District. \u201cAll levels of County leadership are focused on prudent financial planning and economic resiliency, while also providing and strengthening essential services for our communities.\u201d<\/p>\n \u201cThe County\u2019s AAA rating is testament to the Board of Supervisors\u2019 commitment to establish a solid financial foundation to ensure we deliver County services fairly and responsibly, particularly to those who are most vulnerable and in need, especially coming out of the COVID pandemic,\u201d said\u00a0Supervisor Hilda L. Solis<\/strong>, who represents the First District. \u201cThis diligence has helped ensure we have sufficient funding to preserve the vital services and support County residents and businesses depend on right now and that we are prepared to meet future, unexpected challenges.\u201d<\/p>\n \u201cAchieving the highest credit rating is a hard-earned accomplishment for the County that will benefit the millions of residents who rely on us to deliver services and resources effectively,\u201d said\u00a0Supervisor Holly J. Mitchell<\/strong>, who represents the Second District.<\/p>\n \u201cThis credit rating reflects our commitment to managing taxpayers\u2019 dollars responsibly and prudently even while tackling head on the challenges people are facing and some of the most difficult crises of our time,\u201d said\u00a0Supervisor Janice Hahn<\/strong>, who represents the Fourth District.<\/p>\n \u201cI am proud of Los Angeles County\u2019s robust credit rating,\u201d said\u00a0Supervisor Kathryn Barger<\/strong>, who represents the Fifth District. \u201cI have worked hard to make prudent financial decisions, including being watchful of debt limits, investing in infrastructure, and ensuring we continuously save into our Rainy Day Fund to keep the County fiscally solvent. As a fiscal enterprise, Los Angeles County remains fundamentally strong and prepared to continue serving as the public\u2019s safety net.\u201d<\/p>\n \u201cL.A. County is a major State and national economic driver. We continue to exhibit fiscal discipline and resilience through different economic cycles, while providing essential services to our nearly 10 million residents,\u201d\u00a0Chief Executive Officer Fesia Davenport<\/strong>\u00a0said.<\/p>\n The announcements came after the County\u2019s annual meeting with each of the three agencies on May 30, 2024. The County was represented by Board Chair Horvath, as well as the Chief Executive Officer, Treasurer and Tax Collector, Auditor-Controller and Director of the Department of Health Services.<\/p>\n \u201cThese ratings reflect the work of the County family and Board\u2019s outstanding fiscal leadership,\u201d said\u00a0Treasurer and Tax Collector<\/strong>\u00a0Elizabeth Buenrostro Ginsberg<\/strong>. \u201cIt is gratifying to see the County\u2019s longstanding budgetary stewardship recognized by the ratings agencies.\u201d<\/p>\n