The City of Rocklin is pleased to announce that the bond rating agency, Fitch, has improved Rocklin’s rating from ‘AA+’ to ‘AAA’. Fitch is an independent bond rating agency that evaluates our budgets, financial statements, operating performance, debt profile, economic drivers, and long-term liabilities to rate our debt and ability to repay investors.

Fitch Ratings has upgraded the City of Rocklin Issuer Default Rating (IDR) to ‘AAA’ from ‘AA+’ and the Rocklin Public Financing Authority’s 2016 Lease Obligations Bond to ‘AA+’ from ‘AA’, which indicates the Rating Outlook is Stable. A bond rating is a grade given to bonds that indicates their credit quality. The bond rating is an important process because the rating provides information for investors as to the quality and stability of the bond. The rating greatly influences interest rates, investment appetite, and bond pricing. This improved rating places Rocklin at the top of the bond rating scale.

Our fiscal discipline is paying off, as Fitch’s recent press release notes: “The ‘aaa’ financial resilience assessment reflects Fitch’s assumption that the unrestricted fund reserve balance will remain well above 25% of spending, given the City’s track record of sizable reserves.” The upgrade to ‘AAA’ from ‘AA+’ reflects the implementation of Fitch’s new “U.S. Public Finance Local Government Rating Criteria”. The ‘AAA’ IDR incorporates the district’s strongest demographic and economic trend and level metrics.

Mayor Greg Janda states, “Our Fitch Bond Rating increasing is a testament of our dedication to fiscal responsibility and structurally balanced budgets. This rating upgrade will potentially save Rocklin money in lower interest costs on all future bond issues and mitigate or eliminate the need for bond insurance, which will also lower bond costs. Remaining fiscally prudent is vital to our City’s future and this rating increase is evidence that we are headed in the right direction.”

Find the public announcement from Fitch here: Fitch Upgrades Rocklin’s (CA) IDR to ‘AAA’ on Criteria Change; Outlook Stable (fitchratings.com)