Orange County’s Triple-A credit rating, which is the highest possible rating, has been reaffirmed by Moody’s, Standard & Poor’s and Fitch Ratings. This rating means the county’s strong financial position will enable it to receive the best possible interest rates when it issues bonds.
In its report, Fitch wrote that “the 'AAA' IDR (Issuer Default Rating) and GO (General Obligation) bond ratings reflect the county's 'aaa' financial resilience given its ample budgetary flexibility and a history of strong available reserves above 28% of spending over the last 10 years, comfortably above the minimum 7.5% of spending levels needed for the assessment. … Orange County's financial resilience is driven by the combination of its 'High' revenue control assessment and 'High' expenditure control assessment, culminating in an 'Ample’ budgetary flexibility assessment.”
Moody’s report credited the county’s stable outlook on its belief “the county's financial position will remain healthy, supported by growing revenue, conservative budget management and formal policies. The economy will experience continued growth given its location within the RTP and significant institutional presence.”
According to Standard & Poor’s report, “our rating reflects Orange County's ability to maintain a strong financial profile through various economic cycles as a result of its growing tax base supported by its long-term planning and prudent budgeting practices.”
On June 6, 2024, the County issued Series 2024 A and B Limited Obligation Bonds, which were rated AA+/AA1. Limited Obligation Bonds are generally rated one notch below the County’s AAA GO bond rating.
The Series A amount of $10.2 million will finance K-12 emergency radio coverage, school improvements, water and sewer infrastructure, solid waste equipment, and other county capital needs.
The Series B amount of $2 million will support the upfit of a county building leased to Well Dot, a provider in Health Care IT operations.
Orange County is one of a few U.S. counties to hold AAA ratings by all three of the major rating agencies.