Atascadero’s Fitch Rating raised from ‘A’ to ‘AA’
–The City of Atascadero announced that Fitch Ratings has raised its credit rating on Atascadero Community Development Agency (Atascadero Redevelopment Project) 2004 Tax Allocation Bonds (TABs) from “A” to “AA”. The upgrade of the TABs to ‘AA’ reflects the implementation of Fitch’s revised criteria for U.S. state and local governments (released on April 18, 2016), which places increased focus on the structure’s financial resilience through economic cycles.
Fitch Ratings evaluated Atascadero’s general creditworthiness with the consideration of several factors, stating, “After recessionary declines, the project area’s taxable assessed value (TAV) stabilized in fiscal 2013 and has seen increasing annual growth.”
The report went on to state, “The city of Atascadero is located midway between Los Angeles and San Francisco within San Luis Obispo County (Fitch implied general obligation rating ‘AAA’/ Stable Outlook), approximately 20 miles north of the city of San Luis Obispo. The agency project area was established in 1999 and contains about 1,100 acres, encompassing the downtown area, including several commercial and residential developments. The project area represents 6.6% of the city’s total area. The city’s employment trends remain positive with unemployment below the state’s and national levels. The city’s wealth and income indicators continue to be above state and national rates.”
“This raise in the Fitch rating is continued great news for Atascadero and is indicative of the City’s long-term financial stability and success through thoughtful, careful planning and judicious use of resources”, says Mayor Tom O’Malley.
Additional information on the Rating Services analysis can be found on the City’s website at www.atascadero.org/adminservices.
