Yolo’s Credit Outlook Upgraded from “Negative” to “Stable”

By Beth Gabor

Recently, Yolo County was notified by Standard & Poor’s Ratings Services that its credit rating outlook has been upgraded from “negative” to “stable.”  Standard & Poor’s also affirmed the underlying rating of BBB+ on the county’s 1998 lease revenue bonds. This represents an overall improvement in credit rating.

“The outlook revision reflects our view of the county board’s recent implementation of structural budget reductions and budget policies and practices, which have led to a recent improvement in the county’s performance,” said Standard & Poor’s credit analyst Misty Newland.

“We are certainly pleased with this upgrade in our credit rating outlook,” said Yolo County Board of Supervisors Chair Matt Rexroad.  “I think it underscores our ongoing efforts to be good stewards of public funds.  It also highlights our successes in making the best of a tough situation and managing our resources in a reasonable way.”

The notice from Standard & Poor’s states:

“The rating reflects our view of the county’s:

• Access to a broad economic base anchored by UC Davis, and participation in the greater Sacramento economy;
• Adoption of budget policies including general reserve and required budgeted contingency for all major operating funds;
• Improved financial performance, which has allowed it to fund a general reserve and budget contingencies; and
• Low debt burden.”

“Standard & Poor’s has indicated that if we can sustain our budget progress, and continue to implement structural budget improvements, they expect our credit rating to continue to improve in the future,” said Yolo County Administrator Patrick Blacklock.