Moreno Valley Earns Strong Credit Rating
The City of Moreno is pleased to announce that it has earned an "A" rating with an upgrade in outlook from "stable" to "positive" from Standard & Poor's in connection with its Lease Revenue Refunding Bonds, Series 2013. S&P noted that the City's continued operation with a balanced budget could lead to a rating upgrade to A+. S&P cited the following credit strengths as part of their rationale:
- Solid liquidity position based on the City's fund balance
- Excellent management team and practices
- Strong budget flexibility
The City Council's resolve to immediately balance the City's General Fund and adopt the current two-year balanced budget was cited as a key factor in achieving the strong rating result.
"This City Council had the courage to make the tough decisions that previous bodies would not, and the result was the first budget balanced in the past 8 years without tapping into our reserve funds. I commend my fellow Council Members for ignoring political expediency and doing the right thing to put our City back on solid fiscal ground," said Mayor Tom Owings.
Richard Teichert, the City's Chief Financial Officer, indicated that S&P also recognized the effort of the City's management team to strategize, plan and take strong steps to manage the City's budget through the recent Great Recession. The City has emerged from the recession financially strong, with stable revenue growth and a strong balance sheet based on the efforts of the City Council and City staff.
This rating affirms the City's previous strong rating based on a review performed by S&P in February 2011. The rating was maintained at that time due to the strength of plans in place, which the City has subsequently delivered. Members of the media with questions and/or interview requests may contact Michele Patterson, Assistant to the City Manager, by phone at 951.413.3030 or by email at michelep@moval.org.