Politics & Government
Credit Agencies Affirm LA County's Bond Ratings As 'Top-Tier'
Two major credit rating agencies affirmed Los Angeles County's bond rating.
LOS ANGELES, CA — Two major credit rating agencies affirmed Los Angeles County's bond rating, signaling confidence in the county's fiscal management, officials touted Monday.
Fitch Ratings gave the county a triple-A rating, the highest possible, with Moody's giving an Aa1 rating, the second highest possible long-term rating from that agency, according to the Los Angeles County Treasurer and Tax Collector.
County officials said they expect a similar high rating from S&P Global Ratings later this summer.
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The ratings were assigned to the county's upcoming $700 million 2026- 27 Tax and Revenue Anticipation Notes, Series A, which will be issued July 1. Bonds and notes are used to fund infrastructure and other long-term investments and manage cash flow in support of day-to-day public services.
Government credit ratings are similar to consumer credit scores. Strong investment grade ratings allow the county to attract a broader group of investors and sell debt at a lower interest rate, saving millions of dollars in interest payments, officials said.
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In their explanation, the agencies cited the county's strong cash flow management, financial operations and ongoing commitment to fiscal resilience in the face of several economic challenges such as the reduction of federal and state funding, changing regulations on the public health care system nationwide, and the county's need to provide nearly $5 billion in settlement costs associated with thousands of childhood sexual assault cases under Assembly Bill 218.
"As the county confronts significant budget challenges, including potential federal funding reductions and mounting legal settlement obligations related to Assembly Bill 218, maintaining a strong credit rating is critical," Board of Supervisors Chair and First District Supervisor Hilda L. Solis said in a statement. "Our disciplined fiscal management and long-term planning help protect the county's financial stability and ability to deliver essential services."
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