|
FOR IMMEDIATE RELEASE
June 8, 2026
LOS ANGELES COUNTY’S TOP-TIER BOND RATINGS AFFIRMED BY THREE MAJOR CREDIT RATINGS AGENCIES
High investment-grade ratings signal confidence in fiscal management and allow low-cost borrowing on behalf of taxpayers
Three of the major ratings agencies have affirmed Los Angeles County’s current strong bond ratings, signaling confidence in the County’s fiscal management as it continues to navigate extreme financial challenges.
Each of the agencies assigned the highest short-term ratings to Los Angeles County's upcoming $700 million offering of 2026-2027 Tax and Revenue Anticipation Notes, Series A, expected to be issued July 1, 2026.
The agencies cited the County’s strong cash flow management, sophisticated financial operations and ongoing commitment to fiscal resilience in the face of multiple challenges. Those challenges include the loss of federal and state funding, changing regulations that will impact the public health care system nationwide, and the need to fund nearly $5 billion in settlement costs for thousands of childhood sexual assault cases under Assembly Bill 218.
Fitch Ratings and Moody’s Ratings also affirmed the County’s premier long-term debt ratings, maintaining a AAA rating (the highest possible) from Fitch and a Aa1 rating from Moody’s, the 2nd highest possible long-term rating from that agency. The county expects a similar outcome from S&P Global Ratings later this summer.
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 on behalf of taxpayers. 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 that benefit the County’s nearly 10 million residents.
“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,” said Board of Supervisors Chair and First District Supervisor Hilda L. Solis. “Our disciplined fiscal management and long-term planning help protect the County’s financial stability and ability to deliver essential services.”
“The County benefits from a broad and diverse economic and property tax base but also relies on a longstanding emphasis on fiscal discipline,” Chief Executive Officer Joseph M. Nicchitta said. “I am pleased to have this affirmation from the rating agencies of the County’s steadfast commitment to financial sustainability, led by the Board of Supervisors.”
The announcements came after the County’s annual meeting with each agency on May 28, 2026. The County was represented by Board Chair Solis, as well as the Chief Executive Officer, Treasurer and Tax Collector, Auditor-Controller, and the Director of the Department of Health Services.
“Investors can take confidence in the ratings agencies’ confirmation of the County’s thoughtful fiscal policies and capital planning,” said Treasurer and Tax Collector Elizabeth Buenrostro Ginsberg. “Transparency is at the center of the Treasurer and Tax Collector’s work to invest, borrow and safeguard public funds, and this extends to our working relationship with the agencies.”
Contact: Shawn Dralle, Assistant Treasurer and Tax Collector, (213) 584-1514 or sdralle@ttc.lacounty.gov
|
