NEWS-LEDGER — MARCH 12, 2014 –
From Beth Gabor
County of Yolo
The international bond rating agency Standard & Poor’s (S&P) in February raised its long-term rating for Yolo County’s general obligation debt from “BBB+” to “A-“ and indicated that the outlook is stable.
The rating is based on S&P’s opinion of the following factors for Yolo County:
The report commented on an “adequate” economy in the region, and said “the stable outlook reflects Standard & Poor’s view of the county’s improved operational results, which are due, in part, to ongoing expenditure reductions. We believe financial management policies will likely facilitate minimum unassigned general fund reserves to further stabilize and improve the county’s financial profile. We could lower the rating if the county were to return to deficit spending. Conversely, we could raise the rating during the two-year outlook period if the county were to maintain its structural balance.”
“The disciplined approach and long-term perspective adopted by Yolo County management and staff clearly paid off and are paving the way toward a more fiscally sustainable future for Yolo County,” said Yolo County Board of Supervisors Chair Don Saylor in a press release. “In the short-term, this raised rating will reduce the borrowing cost for Yolo County in the capital market.”
Copyright News-Ledger 2014