On Thursday, July 14, Moody’s Investors Service again affirmed Alameda County’s high credit rating and maintained the County’s positive rating outlook. Citing factors including Alameda County’s “exceptionally healthy financial position and strong management team,” Moody’ analysts said they expect Alameda County to experience ongoing strong financial performance that could lead to additional credit-rating upgrades.
Moody’s, one of the three major national credit rating agencies, reconfirmed Alameda County’s high credit rating of Aa1 and kept the County’s rating outlook as “positive” for the second year in a row. In its annual review of Alameda County’s finances, Moody’s said future credit-rating upgrades were possible should the County show continued strong financial performance marked by maintaining healthy financial reserves and an ongoing commitment to addressing its unfunded pension liability.
According to Moody’s, Alameda County’s finances benefit from a strong local economy and stable property tax revenues. In addition, analysts cited continued long-term support by local voters of a ½-cent sales tax that generated nearly $100 million for indigent health care in 2015. These funds effectively protect the County’s general fund from having to subsidize one of the County’s major expense items, Moody’s said.