Moody's Upgrades Redondo Beach's Credit Rating

REDONDO BEACH, CA -- Moody's Investors Service this week upgraded Redondo Beach's bond rating from Aa2 to A1, the third highest level.

The rating is for the city's Refunding Revenue Bonds 2008 Series A.

"The notching reflects a moderate legal structure for a California abatement lease financing and the 'less essential' nature of the underlying leased asset of a performing arts center and additional consideration given to pledged tax increment revenues from the South Bay Center Redevelopment Project that provide sufficient revenues to cover lease payments," the credit rating agency said.

Moody's noted the city's improved credit profile for the increase as well as the strong legal protection of the bond.

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