Moreno Valley Earns Credit Rating Upgrade
The City of Moreno is pleased to announce that it has earned a credit rating upgrade to “A+” from “A”, with a stable outlook from Standard & Poor’s in connection with its Lease Revenue Refunding Bonds, Series 2014. The upgrade was based on the City’s improving financial performance according to the S&P analyst.
S&P cited the following credit strengths as part of their rationale:
- Very strong management team and strong policies
- Solid liquidity position based on the City’s fund balance
- Revenues exceeded expenditures for FY 2013/14
- Strong budget flexibility
The City Council and City Manager’s actions to balance the City’s General Fund budget with the current two-year balanced budget was a key factor in achieving the strong rating result. S&P also recognized that the City did not have a balanced budget in recent years, but the effort of the City Council and management team to strategize, plan and deliver on a three-year deficit elimination plan has brought revenues in line with expenditures. The City has emerged from the recession financially strong, with reasonable reserves, steady 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 December 2013. The rating at that time stepped up from an A rating with stable outlook to an A rating with a positive outlook.