Santa Clarita Upgraded to Highest Credit Rating
Standard and Poor’s Upgrades Santa Clarita to AAA Rating During Great Recession
FOR IMMEDIATE RELEASE
September 14, 2012
Contact: Gail Ortiz
661-255-4314
Santa Clarita, Calif. - The City of Santa Clarita was recently notified that its credit rating was upgraded to AAA, the highest rating a municipality can receive. Standard and Poor’s defines the AAA rating as: “Extremely strong capacity to meet financial commitments; the highest rating.” The upgrade is Santa Clarita’s third in five years.
“We set a conservative fiscal plan 25 years ago when the City was established. This is the result of 25 years of continuity in that approach to budgeting and financial management,” explains Ken Pulskamp, City Manager.
"One factor rating analysts consider is the strength of the local economy. Santa Clarita’s focus on being business friendly and attracting high-quality businesses was key in helping the city achieve a AAA rating,” stated Mayor Frank Ferry.
When deciding upgrades, Standard and Poor’s looks at continuity of management of a city, strong availability of general fund reserves, a stable economic base, long-term fiscal performance, a balanced budget, sound fiscal practices, and fully funded future obligations such as Santa Clarita’s 100% funded retiree health care program.
Matt Fabian, a nationally-recognized municipal credit expert who is Managing Director of Municipal Market Advisors in Westport Connecticut: "Coming at a time when local governments--particularly those in California--are facing immense short, and long-term challenges and increasing scrutiny from credit analysts, Santa Clarita's new AAA rating is an exceptionally strong testimonial to the city's economic resilience and management sophistication," he said.
With 482 cities in the state of California, Santa Clarita is one of 68 municipalities with a AAA rating, which include: Beverly Hills, Camarillo, Malibu, Pasadena, Santa Monica and West Hollywood.
For more information about the City of Santa Clarita or to view a copy of the Standard & Poor’s rating service summary, please visit Santa-Clarita.com.
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Additional Contacts:
Standard and Poor’s Primary Credit Analyst:
Daniel J. Zuccarello, New York, 212-438-7414.
daniel_zuccarello@standardandpoors.com
Standard and Poor’s Secondary Contact:
Jennifer Hansen, San Francisco, 415-371-5035
jen_hansen@standardandpoors.com
About Santa Clarita, Calif.:
The city of Santa Clarita is the third largest city in Los Angeles County with approximately 200,000 residents and the twenty-fourth largest city in the state of California. Located about 20 minutes from Burbank Bob Hope Airport, Santa Clarita is recognized as one of the “best places to live” by CNN Money magazine; "LA County's Most Business Friendly City" by the Los Angeles Economic Development Corporation; and the sixth safest city in the United States by the FBI. It is one of Los Angeles County's leading business communities with more than 6,000 companies. Learn more about the city of Santa Clarita at Santa-Clarita.com.
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