The City of Placentia is excited to announce Standard & Poor’s (S&P) Global Ratings has raised its credit issuer rating from ‘AA-‘ to ‘AA.’ S&P is a leading provider of transparent and independent credit ratings worldwide. The City also received an ‘AA-’ bond rating for a specific bond being issued for the future Public Safety Building. The City’s issuer credit has been raised five notches in the past three years and has since gone from “junk status” credit to now AA, the highest tier of issuer credit.  

The upgraded credit rating will have several positive implications for the City of Placentia. It will enhance the City’s ability to secure financing at favorable interest rates, lowering borrowing costs and potentially saving taxpayers money. Additionally, the improved rating will attract more investors and businesses to Placentia, creating opportunities for economic development and job growth. 

“The City of Placentia’s dedication and commitment to financial sustainability and transparency has been validated by S&P once again with another credit upgrade on the heels of last year’s three-notch upgrade,” said Finance Director Jennifer Lampman. “Consistent increases to the City’s fund balance and reserves, management of expenses and the implementation of internal controls all contributed to this upgrade, but more importantly, have enabled the City to invest in infrastructure and provide the community with the  facilities and service level they deserve.” 

The City’s S&P issuer credit rating is a forward-looking opinion about its overall creditworthiness and focuses on the City’s capacity and willingness to meet its financial commitments. The improved rating can be attributed to the City’s strong financial management and prudent fiscal policies, positioning Placentia as an attractive destination for investors and fostering continued economic growth. 

“This latest rating upgrade is a testament to the collaboration, hard work, and dedication of our City officials, staff and the entire Placentia community. We have worked diligently to implement sound financial practices and make responsible decisions that benefit our residents and support the growth of our City,” said Mayor Ward Smith.  

“This upgrade demonstrates the City of Placentia’s commitment to maintaining a strong financial position and providing stability for our community. The improved rating will help us achieve our long-term goals and ensure the continued delivery of high-quality services to our residents as we continue to invest in infrastructure, public safety, parks and community services,” said City Administrator Damien R. Arrula.  

“This upgrade places Placentia in an elite credit category of municipalities with high creditworthiness and underscores the City’s financial stability and positive outlook,” said Larry Kosmont from Kosmont Financial  Services, Placentia’s municipal advisor.