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Medians And Credit Factors: California Municipalities

Overview

California municipalities' credit quality remains very strong, in S&P Global Ratings' view, supported by a dynamic economy that has been one of the nation's top performing for the last several years, generally strong budgetary performance facilitated by steady revenue growth, and financial management often supported by formal policies and regular budget monitoring. These conditions have supported municipalities' efforts to maintain robust available reserves, which have helped more than 83% of California's municipal issuers maintain general obligation (GO) ratings, issuer credit ratings, or general creditworthiness in the 'AA' or 'AAA' categories. S&P Global Ratings does not expect any significant changes to the California municipal sectors' credit quality over the next year, but believes prospects for continued growth are diminishing.

S&P Global Ratings maintains public ratings on 200 municipalities in California. Overall, the credit quality increased recently, with 9% of California cities and towns experiencing upward rating movement or positive outlooks throughout 2019. More specifically, we took 17 positive rating actions and two negative rating actions on municipalities' GO or appropriation debt.

California Municipalities Data

Table 1

California Municipalities: Medians
Rating
AAA AA+ AA AA- A+ A A- BBB+ or lower
Projected per capita EBI (%) 188 128 91 71 55 55 31 72
Market value per capita ($) 267,068 170,194 123,274 88,808 62,237 52,868 28,462 81,377
Available general fund (%) 48 35 28 29 28 13 36 (3)
General fund performance (%) 2.5 2.0 1.8 1.7 3.0 1.9 0.8 (0.4)
Cash and expense (%) 148 123 131 102 99 77 13 85
Carrying charge (%) 2.8 3.0 4.2 3.7 4.5 7.5 1.4 4.9
Pension ADC + OPEB as % expense 8.9 12.0 11.6 9.8 9.3 10.6 0.0 13.1
EBI--Effective buying income. ADC--Actuarially-determined contribution. OPEB--Other postemployment benefits.

Table 2

California Municipalities: Financial Management Assessment
Rating
Score (%) AAA AA+ AA AA- A+ A A- BBB+ or lower
Strong 43 20 19 8 6 0 0 0
Good 55 70 81 74 35 33 0 17
Standard 2 9 0 18 59 67 100 67
Vulnerable 0 0 0 0 0 0 0 17

Chart 1

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Table 3

Selected Rating And Outlook Changes
From Jan. 1, 2019, through Dec. 31, 2019
To From Date
Selected rating changes*
Rancho Cucamonga AA+ AA 17-Jan-19
San Francisco City & County AAA AA+ 5-Feb-19
Redding A+ A 24-Apr-19
Richmond AA- A- 31-May-19
San Mateo AAA AA+ 12-Aug-19
Burlingame AAA AA+ 30-Aug-19
Pacifica AA+ AA 27-Sep-19
McFarland BBB+ A- 17-Oct-19
Sausalito AAA AA+ 30-Oct-19
Colton A A- 31-Oct-19
Placentia BBB BB 5-Nov-19
San Anselmo AAA AA+ 13-Nov-19
La Habra AA+ AA 14-Nov-19
Gilroy AA+ AA 21-Nov-19
El Cerrito BBB A- 26-Nov-19
Calexico BBB- BB+ 20-Dec-19
Outlook changes
Chowchilla Positive Stable 22-Feb-19
Montebello Negative Stable 19-Nov-19
Moreno Valley Positive Stable 8-Mar-19
Oxnard Positive Stable 31-Oct-19
San Diego Stable Positive 6-Aug-19
*Rating changes do not include new ratings or withdrawn ratings. Ratings provided are appropriation ratings where GO or legally available rating is not available.

Table 4

California Municipalities--Rating List
As of Jan. 8, 2020
This list was prepared by individuals on behalf of the USPF Group of S&P Global Ratings and is current as of Jan. 8, 2020. For the most up to date, accurate, and complete information on any credit ratings referenced in this list, please visit www.standardandpoors.com.
Organization Rating - GO Rating - appropriation Outlook
Agoura Hills -- AA+ Stable
Alameda AA+ AA Stable
Albany AA+ -- Stable
Alhambra AA AA- Stable
Anaheim -- AA- Stable
Antioch -- AA- Stable
Arcadia AAA -- Stable
Atascadero -- AA- Stable
Azusa -- A+ Stable
Baldwin Park* AA- -- Stable
Bell BBB+ -- Stable
Bell Gardens -- A+ Stable
Bellflower -- A+ Stable
Benicia AA AA- Stable
Berkeley AA+ AA Stable
Beverly Hills AAA AA+ Stable
Brawley* A -- Stable
Brea -- AA Stable
Brentwood AA+ AA Stable
Brisbane* AA AA- Stable
Buena Park -- AA Stable
Burbank AAA -- Stable
Burlingame AAA AA+ Stable
Calabasas -- AA+ Stable
Calexico -- BBB- Positive
Calistoga -- AA Stable
Camarillo AAA AA+ Stable
Campbell AAA AA+ Stable
Carlsbad AAA AA+ Stable
Carmel By The Sea* AAA AA+ Stable
Cerritos AAA AA+ Stable
Chowchilla* A+ A Positive
Chula Vista -- AA- Stable
Claremont AAA -- Stable
Coachella -- A+ Stable
Colma -- AA Stable
Colton A A- Stable
Commerce -- A+ Stable
Corona -- AA- Stable
Corte Madera -- AA Stable
Costa Mesa -- AA+ Stable
Cupertino -- AA+ Stable
Delano -- A+ Stable
Desert Hot Springs -- A+ Stable
Diamond Bar -- AA+ Stable
Dinuba -- A- Stable
Downey* AA AA- Stable
El Centro A+ A Stable
El Cerrito -- BBB Negative
El Monte -- A Stable
El Paso De Robles AAA -- Stable
Elk Grove -- AA Stable
Encinitas AAA AA+ Stable
Escondido AA- A+ Stable
Fairfax AA+ -- Stable
Fairfield* AA -- Stable
Fontana AA- A+ Stable
Fountain Valley AAA AA+ Stable
Fremont AA+ AA Stable
Fresno A+ A Stable
Fullerton* AA AA- Stable
Garden Grove -- A+ Stable
Gardena -- A+ Stable
Gilroy AA+ AA Stable
Glendale AA+ AA Stable
Glendora* AAA -- Stable
Grover Beach AA -- Stable
Hawthorne* AA- A+ Stable
Hayward -- AA Stable
Hermosa Beach -- AA+ Stable
Hesperia -- A Stable
Huntington Beach -- AA Stable
Indio AA- A+ Stable
Inglewood AA- A+ Stable
Irwindale -- A+ Stable
Kerman -- A Stable
Kingsburg -- A+ Stable
La Habra AA+ AA Stable
La Mirada AA+ AA Stable
La Verne* AA+ -- Stable
Laguna Hills -- AA+ Stable
Lake Elsinore -- A Stable
Lake Forest AAA AA+ Stable
Lakeport -- AA- Stable
Lancaster -- A Stable
Larkspur AAA AA+ Stable
Lincoln -- AA- Stable
Livermore -- AA Stable
Lodi -- A+ Stable
Long Beach AA AA- Stable
Los Alamitos AAA AA+ Stable
Los Altos -- AA+ Stable
Los Angeles AA AA- Stable
Los Gatos -- AA+ Stable
Lynwood -- A- Stable
Madera -- A Stable
Malibu AAA AA+ Stable
Mammoth Lakes* A+ -- Stable
Manhattan Beach City AAA AA+ Stable
Marina AA- -- Stable
Martinez AA+ -- Stable
Marysville* A A- Stable
McFarland -- BBB+ Negative
Mill Valley AAA AA+ Stable
Millbrae AA+ -- Stable
Milpitas AAA -- Stable
Mission Viejo AAA AA+ Stable
Monrovia AA AA- Stable
Montclair -- A Stable
Montebello A+ A Negative
Moraga -- AA+ Stable
Moreno Valley -- A+ Positive
Morgan Hill -- AA Stable
Mountain View AAA -- Stable
Murrieta -- A+ Stable
National City A+ -- Stable
Newark -- AA Stable
Newport Beach AAA AA+ Stable
Norwalk -- A+ Stable
Novato AA+ -- Stable
Oakland AA AA- Stable
Oakley -- AA- Stable
Oceanside AA+ AA Stable
Ontario -- AA- Stable
Orinda AAA AA+ Stable
Oxnard A A- Positive
Pacifica AA+ AA Stable
Palm Springs AA+ AA Stable
Palmdale AA- A+ Stable
Palo Alto AAA AA+ Stable
Pasadena AAA AA+ Stable
Pico Rivera -- AA- Stable
Pismo Beach -- AA+ Stable
Pittsburg AA- -- Stable
Placentia -- BBB Positive
Pomona* AA- A+ Stable
Poway -- AA+ Stable
Rancho Cordova -- AA- Stable
Rancho Cucamonga AA+ AA Stable
Rancho Santa Margarita AAA AA+ Stable
Redding -- A+ Stable
Redlands* AA- -- Stable
Redondo Beach AA+ AA Stable
Richmond AA- A+ Stable
Ridgecrest -- A Stable
Riverside AA AA- Stable
Rocklin AA+ AA Stable
Roseville AA+ AA Stable
Sacramento AA- A+ Stable
Salinas AA- A+ Stable
San Anselmo AAA -- Stable
San Bruno* AAA AA+ Stable
San Buenaventura -- AA Stable
San Carlos AAA -- Stable
San Diego AA AA- Stable
San Dimas -- AA Stable
San Francisco City & County AAA AA+ Stable
San Jose AA+ AA Stable
San Juan Capistrano AAA -- Stable
San Leandro* AA AA- Stable
San Luis Obispo AA+ AA Stable
San Mateo AAA AA+ Stable
San Pablo -- AA- Stable
San Rafael* AA+ AA Stable
San Ramon AAA AA+ Stable
Sanger -- A Stable
Santa Ana AA -- Stable
Santa Clara -- AA Stable
Santa Clarita AAA AA+ Stable
Santa Cruz AA+ AA Stable
Santa Monica AAA AA+ Stable
Santa Rosa* AA AA- Stable
Saratoga AAA -- Stable
Sausalito AAA AA+ Stable
Scotts Valley* AA AA- Stable
Seaside -- AA- Stable
Shasta Lake -- A+ Stable
Signal Hill -- AA Stable
Simi Valley AAA AA+ Stable
South Gate* A+ - Stable
South Lake Tahoe* AA+ AA Stable
Sunnyvale AAA AA+ Stable
Thousand Oaks -- AA+ Stable
Torrance -- AA Stable
Tracy -- AA- Stable
Truckee -- AA+ Stable
Tulare -- A Stable
Union City* AA+ - Stable
Vallejo -- BBB Stable
Visalia -- A+ Stable
Vista -- AA- Stable
West Covina -- A+ Stable
West Hollywood AAA AA+ Stable
Westlake Vill -- AA+ Stable
Westminster -- A+ Stable
Yorba Linda AAA AA+ Stable
Yountville AA+ AA Stable
Yuba City -- A+ Stable
*GO rating provided is for bonds secured by pledge of all legally available revenue; no public unlimited tax general obligation rating or issuer credit rating.

This report does not constitute a rating action.

Primary Credit Analyst:Benjamin P Geare, San Francisco + 1 (415) 371 5047;
benjamin.geare@spglobal.com
Secondary Contact:Chase C Ashworth, Centennial + 1 (303) 721 4289;
chase.ashworth@spglobal.com

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