The County of San Luis Obispo once again received the highest possible ratings for its financial performance, specifically relating to bonds, according to a Fitch Ratings announcement last week.
For the third consecutive year, Fitch Ratings, one of three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission, affirmed the highest possible ratings for the County’s $100.5 million pension obligation bonds (POBs) at ‘AA+’, $16.6 million lease revenue refunding bonds at ‘AA+’, and the implied general obligation (GO) at ‘AAA’.
“This reaffirms our consistently strong financial performance thanks to our sound fiscal policies and practices,” said County Administrative Officer Dan Buckshi. “We are in better shape now than we were when we entered the recession, and that’s a testament to the Board of Supervisors and staff working hard to ensure that public resources are well managed.”
Fitch affirmed that the rating outlook is stable based on key rating drivers: consistently strong financial performance and management, stable tax base, stable local economy, very low debt profile, and general fund obligations.
“The County maintains a consistently solid financial position, benefiting from conservative budgeting and financial planning,” Fitch announced in a news release. “The County has posted seven consecutive years of surpluses resulting in significant reserve levels.” Fitch added, “The rating is reflective of the county’s exceptional financial performance.”
Fitch found that the County’s overall debt burden and carrying costs are low, and that no significant, additional debt is expected in the near term. The County’s low debt, pension reforms, and strong reserve levels contributed to the high ratings.
“We continue to climb out of the economic downturn,” said Auditor-Controller-Treasurer-Tax Collector Jim Erb. “Board of Supervisor approved changes to pension benefits and funding policies, as well as cooperation from the employee unions, has placed the County’s pension plan in a stronger financial position which is more sustainable over the long run.”