Any improvement to a county’s credit rating is significant

YUBA COUNTY, CA (MPG) - Strong financial management and budget performance were among the reasons given by Standard & Poor’s to bump Yuba County’s credit rating to a level labeled as “very strong.”

America’s largest credit rating agency increased Yuba County’s credit rating from ‘A+’ to ‘AA-‘ (the more A’s, the better the rating). The credit upgrade was based on: An examination of Yuba County’s economy within the broad and diverse metropolitan statistical area; Strong management with good financial policies and practices;  Strong budgetary performance, which closed with operating surpluses in the General Fund in fiscal year 2020; Very strong budgetary flexibility, with an available fund balance in FY 2020 of 43% if operating expenditures; Strong debt and contingent liability profile; Strong institutional framework score.

The county also saw an increase on its underlying rating on joint financing projects with such entities as the Yuba Water Agency, from ‘A’ to a “strong” ‘A+’. In addition, S&P assigned an ‘A+’ long-term rating to the $6 million sheriff’s facility refinancing projects.

Some other key takeaways from the rating issued by S&P: Yuba County’s property tax base has demonstrated continuous growth following the Great Recession; The County’s assessed value has grown by an average of 6.3%; Property tax revenues increased by 11.9% in FY 2020, which may reflect increased housing construction and a subsequent rise in property values; The County has seen an improved economy with an unemployment rate that has fallen below the 10 percent threshold.

Any improvement to a county’s credit rating is significant, as it describes the general creditworthiness of an entity that issues debt—in other words, the better the county score, the lower the interest rates assigned to county debts. This helps save money on large-scale (and expensive) projects like the Sheriff’s Department building, levee projects, etc.

Credit ratings from S&P are typically issued each quarter.