Fitch Ratings upgrades Sonoma County’s credit rating on Pension Obligation Bonds to AA+

International credit rating firm Fitch Ratings has upgraded Sonoma County’s pension obligation bonds to AA+ from AA, a sign of increasing fiscal stability. Fitch Ratings also affirmed Sonoma County’s Issuer Default Rating at AA+ and provided a “Stable” ratings outlook.

In a rating action commentary, Fitch said the AA+ position “reflects the county’s continued strong financial operations,” partly due to building up budgetary reserves. The commentary also said that the County’s “long-term liability composite is strongest, reflecting low direct debt” as well as net pension liabilities relative to residents’ personal income and governmental revenue.

“Fitch is a major credit rating agency for municipalities, and we welcome their strong endorsement of our financial position,” said Supervisor David Rabbitt, chair of the Sonoma County Board of Supervisors. “This is a testament to the hard work we have done to keep our fiscal house in order.”

Pension obligation bonds are bonds issued by a state or local government to pay its obligation to the pension fund. Fitch's long-term rating scale ranges between 10.0 or AAA and 1.0 or BBB-. A score of AA+, the second highest rating, is between 9.0 and 9.9. Sonoma County’s AA+ rating scored a numerical value of 9.8.

Read the Fitch rating action commentary for Sonoma County here.

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Media Contact:
Matt Brown, Communications Specialist
publicaffairs@sonoma-county.org
(707) 565-3040
575 Administration Drive, Suite 104A
Santa Rosa, CA 95403