Los Angeles County has secured the highest credit ratings from two major agencies, marking a significant achievement in financial stability and fiscal performance. Fitch Ratings has upgraded the County's long-term issuer credit rating to AAA from AA+, setting a benchmark within the financial markets. Echoing this excellence, S&P Global Ratings and Moody's have maintained their stellar AAA and Aa1 ratings for the County respectively. Such recognition places Los Angeles alongside only four other California counties boasting similar accolades of financial trustworthiness.
This news follows the recent pricing of Los Angeles County's 2024-25 $700 million Tax and Revenue Anticipation Notes offering, which came in at a comfortable 3.25%. All three credit agencies assigned the highest short-term ratings to this issuance, a testament to the County’s solid fiscal status. Despite the complex economic landscape, these ratings suggest that the County can expect to pay less in interest when borrowing funds, ultimately saving taxpayer dollars while continuing to serve its nearly 10 million residents.
According to the announcement by Los Angeles County officials, the ratings reflect robust economic strength, a stable tax base, and commendable budgetary management. "Our AAA credit ratings from Fitch and S&P, and Aa1 credit rating from Moody’s demonstrates that Los Angeles County's fiscal health is strong," Chair of the Los Angeles County Board of Supervisors, Lindsey P. Horvath, stated. She further emphasized the unified commitment at all County leadership levels to prudent planning and enhancing community services.
Adding to the discourse, Supervisor Hilda L. Solis highlighted fiscal diligence as a safeguard for essential services and future challenges. "This 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," Solis told the press. Manifesting this dedication, Supervisor Kathryn Barger proudly acknowledged the County's vigilance in financial decisions and infrastructure investments.
The rating upgrade reflected a concerted effort by the County to showcase its financial prudence during annual meetings with credit agencies. Chair Horvath, with other key financial leaders, such as Chief Executive Officer Fesia Davenport and Treasurer and Tax Collector Elizabeth Buenrostro Ginsberg, shared this fiscal narrative on May 30, 2024. Acknowledging the collective responsibility, Buenrostro Ginsberg expressed pride in the recognized stewardship, "These ratings reflect the work of the County family and Board’s outstanding fiscal leadership," she asserted.
