City Receives Highest Credit Rating Possible

When it comes to a city's credit, an A+ is great.

But an AA+ is better.

That's what Rancho Santa Margarita is looking at following a comprehensive review of creditworthiness.

Standard & Poor’s Ratings Services has affirmed the credit rating for RSM at AA+, the highest rating possible. Various factors contributed to the desirable credit rating, including economic data, financial policies and practices, administrative considerations and debt factors.

Standard & Poor’s Primary Credit Analyst, Daniel J. Zuccarello, reported the city’s rating reflects “maintenance of very strong available General Fund reserves, supported by good financial management policies and practices."  

Zuccarello also said "the stable outlook reflects Standard & Poor's opinion of the City's willingness to make the budget adjustments necessary to maintain stable operations, supported by very strong General Fund reserves that exceed 103% of operating expenditures.”

The credit report supports a sentiment that Mayor Tony Beall has said several times over the past year.

“At a time when so many cities are drowning in debt and deficit, we are proud Rancho Santa Margarita is financially strong—we have the highest possible credit rating, a balanced budget and finished last year with $1.2 million dollar surplus and $19 million in reserves,” Beall said.

New city manager Jennifer Cervantez, who has been on the job since July 9, said of the report: “It is extremely gratifying that Standard & Poor’s continues to recognize the hard work of the City Council and staff to prudently manage the City’s finances."