June 14, 2022
Los Angeles County Receives Highest Credit Ratings on Tax and Revenue Anticipation Notes
Los Angeles County has received the highest possible short-term credit ratings on its current Tax and Revenue Anticipation Notes that will minimize the cost of $900 million in financing. This annual, short-term borrowing program assists the County in managing cash given that it receives revenues such as property taxes on an uneven basis throughout the fiscal year.
“We are pleased that the credit rating agencies recognized the County’s fiscal strength and stability as well as our collective response to the challenges posed by the pandemic,” said Los Angeles County Board of Supervisors Chair Holly J. Mitchell, Supervisor to the Second District. “Our Board of Supervisors, Chief Executive Officer, and County departments have demonstrated that we can maintain and strengthen essential services to County residents while remaining fiscally responsible. As we emerge from the pandemic, we will address inequities and be better than before.”
The ratings issued by the leading national credit rating agencies, Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings, reflect the continued breadth and diversity of the local economy and the County’s proven track record of conservatively managing its finances. “Our mission is to provide services that improve the quality of life for all County residents and do so in a manner that is equitable and fiscally responsible,” said Chief Executive Officer Fesia Davenport. “These strong ratings reflect our values of integrity, inclusivity, and compassion, while serving as a steward of the public’s resources.”
The ratings provide an important evaluation of credit risk for purchasers of the County’s Tax and Revenue Anticipation Notes, known as TRANs, and other bond issues.
“Los Angeles County has a population of more than 10 million people and an economy larger than most states. Our strong credit ratings reflect our prudent budgetary practices under the leadership of our Board of Supervisors,” said Treasurer and Tax Collector Keith Knox.
The announcements came after the County’s annual meetings with each of the three agencies on May 26, 2022. The County was represented by the Board of Supervisors Chair, Holly J. Mitchell, as well as the Chief Executive Officer, Treasurer and Tax Collector, Auditor-Controller, and Director of the Department of Health Services.