Moody’s Upgrades City of Calabasas Bond Credit Rating

From the City of Calabasas:

CALABASAS, CA - Despite a challenging economic environment, Moody's Investors Service has upgraded the long-term issuer rating of the City of Calabasas from Aa1 to AAA. Moody’s has also upgraded the City's 2006 Certificates of

Participation for the City Hall and Civic Center Project from Aa3 to Aa1 and its 2005 Refunding Certificates of Participation from Aa3 to Aa2. Furthermore, the rating outlook is stable.

The upgrade of the long-term issuer rating to Aaa from Aa1 is driven by the City’s sustained financial health, with exceptional reserves, and limited pension burden. “Calabasas is honored to receive this latest upgraded
status,” said Calabasas Mayor James R. Bozajian. “California has weathered many tough economic storms over the past 25 years, but the City of Calabasas has always managed to remain anchored on solid financial ground.”

Moody’s determined that the credit strengths of Calabasas include a robust financial position with strong liquidity and reserves, very high wealth levels, and a limited pension burden. Moody’s saw the City’s credit
challenges as having a tax base size that is below average for the rating category and near-term expenditure pressures. Overall Moody’s stable outlook reflects the organization’s expectation that Calabasas will “maintain its strong credit fundamentals over the next two years” and anticipates the City's tax base to “grow moderately, its exceptional financial position to be sustained, and debt burdens to decline.”

Image via City of Calabasas.