CountyofSantaBarbaraBy Santa Barbara County
S&P Global Ratings forecast County will maintain strong financial profile
Santa Barbara County proudly announces that it has been assigned a ‘AAA’ issuer credit rating (ICR) from S&P Global Ratings, the highest rating available. This esteemed recognition reflects the County’s strong financial position and prudent fiscal management.
“We are thrilled to have achieved the highest credit rating possible from S&P Global Ratings,” said County Executive Officer Mona Miyasato. “This rating is a testament to our sound financial practices, experienced financial staff, and the Board’s practice of fiscal prudence as a cornerstone to sustainable progress. It reaffirms our dedication to serving the residents of Santa Barbara County with integrity and accountability.”
S&P Global Ratings highlighted the County’s Renew initiative that focuses on revisioning the organization, redesigning how it works, and rebalancing resources to address financial and organizational challenges. “In our opinion, the continued implementation of the…organizational framework, Renew, is a governance strength. The [Renew] organizational model emphasizes financial resiliency and operational efficiency, including integrating feedback from customers to maximize quality service, as well as a focus on staff retention, innovation, and engagement. The framework embeds a culture of strategic planning and continuous improvement,” stated S&P Global Ratings in its announcement.
Receiving a AAA credit rating not only sets the County apart, but it also reflects the market’s confidence in the County’s financial strength and creditworthiness. Having a AAA credit rating will afford the County access to the lowest interest rates available in the financial market. Lower interest rates will save the County money which is a win for the County and taxpayers.
“Receiving a AAA rating is an amazing achievement and a great attestation to our County’s commitment to fiscal responsibility,” said Chair of the Board of Supervisors Steve Lavagnino. “Like a home mortgage, receiving lower interest rates will equate to decades of interest savings for the County.”
In addition to the ‘AAA’ ICR, S&P Global Ratings has also assigned a ‘AA+’ issue rating to Santa Barbara County’s anticipated $109 million certificates of participation (COPs), underlining the County’s strong creditworthiness in the eyes of investors.
The funds from the COPs will finance critical capital improvements across the county, including the construction of a new probation headquarters, a new regional fire dispatch center, improvements at Lake Cachuma for recreational vehicles, the renovation of the main jail, and further enhancements to the County’s infrastructure and services.
“Santa Barbara County has demonstrated strength and resilience across credit fundamentals, as evidence by a consistent growth trajectory in its tax base, primary revenue sources and available fund balances,” commented S&P Global Ratings. “Furthermore, in our view, the county’s debt profile remains affordable.”
The S&P Global Ratings Outlook document for Santa Barbara County can be found here, 78aa06e0-026c-4a09-86bb-2897bb6354c8 (civicplus.com)
This communication is not an offer to sell nor a solicitation of an offer to buy securities. Securities may only be purchased through a broker and an official statement relating to the securities.
