WE ARE NAPA COUNTY

County Executive Office

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FOR IMMEDIATE RELEASE ON  MARCH  18, 2014

Contact(s):
Nancy Watt
County Executive Officer
(707) 253-4421
Nancy.watt@countyofnapa.org
County Executive Office


1195 Third St Suite 310
Napa, CA 94559

Nancy Watt
County Executive Officer

Napa County’s COP rating upgraded to AA+

Move means less expensive debt to pay for Jail site, HHSA campus

 

 

 

 

(NAPA, California) Citing Napa County’s strong economy, sizable reserves, conservative financial management practices and minimal debt burdens, Standard & Poor’s(S&P) Rating Services has raised the County’s Certificates of Participation rating to AA+ from AA.  Based on this rating action, Napa County’s implied Issuer Credit Rating is AAA, which is the highest rating level that can be achieved for municipal bond issuers in the United States.
“I am delighted,” said County Executive Officer Nancy Watt. “This rating recognizes the careful stewardship that the Board and staff have shown over  the public resources we are entrusted with.”
 The higher rating  shows investors that the County’s Certificates of Participation, a type of bond issued to finance capital projects, such as the site for a new Jail and the Health and Human Services campus improvements, are of very high credit quality. That investor confidence translates to lower interest rates and less interest paid over time on debts.
“The rating upgrade means that Napa County is now a AAA-rated county.  There are only a handful of AAA-rated counties in the state, so the County is in elite company,” said Sujay Umashankar, assistant vice president at KNN Public Finance, the County’s financial advisor for its debt program. “Napa County has always been highly rated, but over the last three to four years, all of the important areas that are reviewed by S&P have gone in a positive direction. County taxpayers will reap the benefits of an improving economy as well as less expensive debt to improve their public facilities.”
S&P’s rationale for the upgrade to AA+ include the County’s 
  • Strong economy;
  • Very strong budget flexibility, with 2013 reserves at more than 50% of general fund expenditures;
  • Strong budgetary performance;
  • Very strong liquidity providing very strong cash levels to cover both debt service and expenditures;
  • Very strong management conditions with strong financial policies but a consistent ability to maintain balanced budgets; and
  • Very strong debt and contingent liabilities position.

KNN Public Finance will issue the County’s next round of COP’s on Thursday, March 20. 

 

 


The Board of Supervisors and staff of Napa County are dedicated to preserving and sustaining Napa County for present and future generations as a community with generous open space, a thriving agricultural industry and a quality human and natural environment.

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