Standard and Poor’s Rating Services notified the City of Los Alamitos that they have recently raised the credit rating on the city’s 2006 Series Certificate of Participation Bonds from AA- to AA+.
Standard and Poor’s Rating Services notified the City of Los Alamitos that they have recently raised the credit rating on the city’s 2006 Series Certificate of Participation Bonds from AA- to AA+.
The rating was raised as a result of an analysis of the city’s current financial outlook, and is based in large part on actions taken by city council to establish reserves for unfunded liabilities, especially the city’s pension obligations to the California Public Employees Retirement System. The new rating is based upon four major factors including:
1. Participation in the broad and diverse Los Angeles economy
2. Very strong to extremely strong income and wealth levels
3. Maintenance of very strong available General Fund reserves
4. Low overall debt with no additional debt plans
Standard and Poor’s specifically cited the city council’s decision to create a CalPERS reserve fund to increase the funded portion as being an important factor in their decision to increase the rating.
The very high rating will definitely help to reduce borrowing costs in the future should the city decide at some point to issue additional bonds.
For additional information on the City of Los Alamitos, visit www.cityoflosalamitos.org for more or call 562-431-3538.
