S&P Global Ratings Affirms City of Pasadena’s ‘AAA’ Rating, Stable Outlook

S&P Global Ratings has affirmed its ‘AAA’ rating on Pasadena’s general obligation bonds and pension obligation bonds. The rating agency also affirmed its ‘AA+’ long-term and underlying rating on Pasadena’s certificates of participation and lease revenue bonds outstanding. The outlook on all ratings is “stable.”

The ratings reflect Pasadena’s position as a key employment and entertainment hub within the broad and diverse Los Angeles County metropolitan statistical area (MSA), which continues to spur economic growth despite disruptions caused by the COVID-19 pandemic, according to the S&P report.

The city’s extensive and well-integrated fiscal management practices and policies are also credit strengths, as they have enabled the city to maintain sizable reserves and post three general fund surpluses over the last four years, the agency observed.

The stable outlook indicates that S&P Global Ratings expects Pasadena to continue to manage its budgetary performance and maintain its strong financial position in the next two years.

The rating agency reported it also expects the city to continue to support the Rose Bowl Operating Company (RBOC), which experienced a reduction in revenue due to state restrictions on large-scale events during the pandemic.