April 22, 2008

PASADENA RECEIVES “AAA” RATING
FROM STANDARD & POOR’S

Standard & Poor’s, the largest provider of independent credit ratings, has assigned a “AAA” rating to the city of Pasadena.

The rating reflects the city’s general creditworthiness, including the breadth and depth of the local economy, a consistently strong general fund and moderate overall debt levels.
Pasadena’s financial performance and debt management are guided by policies adopted by the city council and a debt management handbook that addresses specific risks.

“The city’s reserve position is supported by its financial policies, which dictate a minimum of eight percent cash balance measured against previous years’ appropriations,” the April 16 report states. “Additional measures to anticipate and prepare for near-term financial challenges include monthly updates to financial forecasts with a five,-year time horizon.

“The stable outlook reflects the expectation that the city will retain its status as a destination for retail, tourism and employment. A further expectation is that management will continue its commitment to high reserve levels and limit its future debt issuances so that debt remains at moderate levels despite recent increases.”

In addition to the “AAA” rating, Standard & Poor’s raised the city of Pasadena’s rating from “AA” to “AA+” on certificates of participation (COPs) series 2001 and 1993 and pension obligation bonds; and assigned a “AA+” rating to the city’s $135.5 million series 2008A variable rate COPs and $29 million series 2008B fixed-rate refunding bonds.

This is very significant given that there are only six other cities in California with “AAA” ratings, and testament to Pasadena’s strong financial position,” said Acting Finance Director Steve Mermell. “As a practical matter, the rating upgrade will reduce future borrowing costs for the city.”

For more information call (626) 744-4350.