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The city of Downey has received an A+ credit rating by Standard & Poor’s rating services, the city announced this week.
The A+ scores apply to Downey’s 2002 certificates of participation and 2005A pension obligation bonds.
S&P recently revised its criteria for rating city obligations, partially in response to recent bankruptcy filing by local governments. The new criteria apply more stringent financial requirements, such as higher fund balance requirements and balanced budgets to the analysis of credit quality of the bonds, city officials said.
There is also a greater emphasis on the ability for cities to deal with budgetary issues.
Given this additional rating criteria, Downey proved to be in “exemplary financial standing.”
This past January, Downey also received an excellent credit rating by Moody’s Investors Service, an independent consulting group who provides international financial research on bonds issued by commercial and government entities.
Moody’s conducted a review of the city’s overall financial health and awarded Downey an “A2″ rating.
Mayor Mario Guerra called the positive credit ratings “a reflection of our fiscal policies over the past four years.”
“Our city continues to have a balanced budget and healthy reserves, and we are happy that a rating company such as S&P has shown the added confidence that we have seen,” Guerra said. “I am proud of what we did during a recession and how our efforts are rewarded.
“Our finances have allowed us to pay and provide for the best police and fire departments, and great services for our citizens,” the mayor added. “The real winners are our residents and our community.”