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FOR IMMEDIATE RELEASE
June 10, 2025
LOS ANGELES COUNTY’S STRONG BOND RATINGS AFFIRMED BY THREE MAJOR RATINGS AGENCIES
Agencies Assign Highest Short-Term Ratings to Upcoming $700 Million Tax and Revenue Anticipation Notes Offering
The nation’s major ratings agencies have affirmed Los Angeles County’s current strong bond ratings, signaling confidence in the County’s fiscal management as it navigates a period of extreme financial challenges.
The continued AAA issuer ratings by Fitch Ratings and S&P Global Ratings are the highest possible and the Aa1 by Moody’s Ratings maintains the 2nd highest possible rating from that agency.
The agencies cited the County’s disciplined planning, strong operating performance and robust levels of reserve funds as factors in their decisions, which come as the County confronts challenges including the threatened loss of federal funding and the need to fund $4 billion in settlement costs for thousands of childhood sexual assault cases under Assembly Bill 218.
Each of the agencies also assigned the highest short-term ratings to Los Angeles County's proposed $700 million offering of 2025-2026 Tax and Revenue Anticipation Notes, Series A: F1+ from Fitch Ratings, SP-1+ from S&P Global Ratings, and MIG 1 from Moody’s Ratings. The notes are expected to be issued July 1, 2025.
"I'm proud that our County's financial resilience and responsible budgeting have been recognized," said Kathryn Barger, Chair of the Los Angeles County Board of Supervisors and representative of the Fifth District. "As we recover from the recent wildfires and navigate ongoing fiscal challenges, these ratings reaffirm our Board's commitment to making tough, thoughtful decisions that protect our social safety net while maintaining strong credit quality for investors."
Strong investment grade ratings allow the County to attract a broader group of bond buyers and price its debt at a lower rate, saving millions of dollars in interest payments on behalf of taxpayers.
Government credit ratings are similar to consumer credit scores. The County’s status as a low credit risk means the interest rate it pays to borrow money is lower than it would be otherwise, thus providing flexibility and security in funding vital services for the County’s constituents. When the County obtains a low-interest rate loan, all County residents benefit.
“In times like these, it is gratifying to see the top ratings agencies recognize Los Angeles County’s financial management practices,” Chief Executive Officer Fesia Davenport said. “Led by our Board, we are upholding a long tradition of fiscal discipline in order to sustain vital services to our residents in an uncertain economy.”
The announcements came after the County’s annual meeting with each of the three agencies on May 29, 2025. The County was represented by Board Chair Barger, as well as the Chief Executive Officer, Treasurer and Tax Collector, Auditor-Controller and Director of the Department of Health Services.
“LA County benefits from a broad-based, diversified economy with a very strong property tax base,” said Treasurer and Tax Collector Elizabeth Buenrostro Ginsberg. “More than that, investors can take confidence in the rating agencies’ confirmation of the County’s commitment to thoughtful financial and capital planning and ratios that reflect healthy reserves and liquidity.”
Contact: Heather Usiski, Assistant Treasurer and Tax Collector, Public Finance and Investments husiski@ttc.lacounty.gov
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