City’s S&P rating raised from ‘A-‘ to ‘A’
–The City of Atascadero announced that Standard & Poor’s Rating Services has raised its credit rating on Atascadero Community Development Agency (Atascadero Redevelopment Project) 2004 Tax Allocation bonds from “A-” to “A.” The ratings services affirms the outlook is stable.
The agency issued $12,490,000 in Tax Allocation bonds for improvements to the downtown core and redevelopment project area. Specifically, projects included the purchase and rehabilitation of the Creekside Building, the Creek Bank Stabilization project, the Sunken Gardens Enhancement Project, the Maiden Statue Restoration, Downtown Streetscape Improvements, and portions of the Lewis Avenue Bridge and Colony Park Community Center Project, among others, according to Director of Administrative Services Jeri Rangel.
The rating services evaluated Atascadero’s general creditworthiness with the consideration of several factors including Atascadero’s improved assessed valuation. The ratings further reflect the agency’s strong cash management as well as its location within San Luis Obispo County with strong economic and income indicators. The assessment reports a stable outlook based on strong debt service coverage and good management practices, and no rating changes are expected for the next two years.
According to the S&P report, “The Atascadero Redevelopment Project Area encompasses approximately 1,110 acres in the central portion of the city and the commercial corridor of El Camino Real bisecting the city from north to south. The project area’s land use categories are primarily residential and commercial, with some industrial properties. Assessed valuation has steadily increased, by 9.8-percent from 2013 to 2016, with growth of 3.6-percent in 2016.”
“This raise in the S&P rating is great news for Atascadero,” said Atascadero Mayor Tom O’Malley. “The City of Atascadero continues to exhibit long-term financial stability and success through careful planning and judicious use of resources.”
Additional information on the analysis can be found on the city’s website at www.atascadero.org/adminservices.
