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Atascadero S&P Global Ratings Raised to ‘A+’

13 March 2024

Successor Agency 2024A and 2024B Tax Allocation Refunding Bonds

The City of Atascadero is excited to announce that Standard & Poor’s Global Ratings has raised its long-term credit rating to ‘A+’ for the Atascadero Successor Agency of the Community Redevelopment Agency’s series 2024A and 2024B Tax Allocation Refunding Bonds. The Rating Services reports the outlook is stable. According to S&P Global Ratings, the stable outlook reflects their opinion that the Redevelopment Project Area will continue to grow steadily and will have consistent ability to cover all bond payments.

The Rating Service evaluated a number of factors including assessed value (AV) growth, growth of the local economy, the balance of residential and commercial properties, the diversity in the concentration of the top ten taxpayers, limitations on issuance of additional debt, and environmental, social and governance factors.

The S&P Global Ratings report went on to state, “Overall, project area AV has grown steadily during the past few years with an average growth rate of 5.6% annually. Most recently, project area AV increased by 7.3% in fiscal 2024, bringing total project area AV up to $1.037 billion with incremental AV increasing to $755.4 million. Management indicates that they expect this growth trend will continue, with further growth expected for the foreseeable future.”

The City, acting in capacity of the Successor Agency, plans to retire the two existing bond issues (2004 Tax Allocation Bonds and 2010 Lease Revenue Bonds) by issuing the 2024A and 2024B Tax Allocation Refunding Bonds in the next few months. Refunding the old bond issues will save taxpayer money throughout the life of the bonds, and doesn’t extend the maturities of the bonds nor increase the amount funded. The rating upgrade will lower costs of borrowing and is a testament to the strengthening economic conditions and strong leadership and management of Atascadero.

For view the full S&P analysis, click the button below.