CREDIT: S&P Global Ratings, April 6, 2023.
S&P Global Ratings raised its long-term rating and underlying rating (SPUR) to ‘AA+’ from ‘AA’ on Washoe County, Nev.’s outstanding general obligation (GO) debt. The outlook is stable.
“The rating action reflects our view that the county will likely maintain its favorable reserve position and positive operations despite recent macroeconomic swings and the payout of a large litigation settlement,” said S&P Global Ratings credit analyst Alyssa Farrell.
The rating further reflects our view of the county’s:
- Growing and diversifying tax base, which serves as the economic hub of the Reno MSA;
- Very strong financial management, with well-embedded financial policies and practices, including comprehensive five-year operating and capital plans and thorough quarterly financial reports to the governing board;
- Positive operations and expectations of maintaining at least strong budgetary flexibility and liquidity despite the budgeted drawdowns; and
- Manageable debt burden and costs, though with large pension and other postemployment benefits (OPEB) liabilities, which could inflate carrying charges in the longer-term.
We rate each of the aforementioned bonds to the county’s limited tax GO pledge, which reflects our view of the county’s underlying creditworthiness. In our opinion, any limitation imposed on Nevada County’s ability to raise revenue is embedded in the financial and economic conditions, and in the factors that we assess in the general creditworthiness of the county.
Read full news release and disclosures here: https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2969860
