Standard & Poor’s Global Ratings (S&P) announced this week that Doña Ana County’s revenue bonds rating was significantly upgraded from ‘A+’ to ‘AA’, a designation just below the highest possible issuer credit rating assigned. Here is a statement from Doña Ana County:
Criteria for the designation upgrade includes strength and stability of pledged revenue, as well as Doña Ana County’s general credit quality. The last rating assigned to the county was in 2014. Since then, the county has demonstrated extraordinary coverage of its debt from pledged revenue, solvent investments, and robust cash reserves.
In the official S&P ratings report delivered to the county this week, the review noted “Doña Ana County’s general creditworthiness reflects the county’s adequate economy and high degree of budgetary flexibility provided by a very strong general fund balance, increasing assessed valuations and low overall debt burden.”
“Credit agencies look at several factors when assigning a rating, including the county’s management structure and financial policies and procedures,” said Doña Ana County Treasurer Eric L. Rodriguez. “This unusual two-level increase says a lot about our cash management efforts.”
For Doña Ana County residents, Rodriguez says the higher credit rating provides for lower borrowing costs for public projects, which lowers the costs to taxpayers.
“The county’s financial future is solid,” said Doña Ana County Manager Fernando R. Macias. “We have made a commitment to strengthening our internal controls – our policies, procedures, providing clean audits, and management of our budget – and we are pleased to know that S&P Global recognizes this with the second-highest credit rating possible.”