On April 26, 2022, the City of Pico Rivera received an AA bond rating from Standard and Poor’s (S&P), one of the leading rating agencies in the country. S&P allocates credit scores to describe the general creditworthiness of companies, cities, or countries that issue debt. A higher credit rating means lower risk, which drives down borrowing costs.
Pico Rivera’s AA rating reflects the strength of the City’s local economy and fiscal outlook, financial management policies and practices, and budgetary performance. Pico Rivera’s credit rating is now on par with major cities in Southern California, and it is actually higher than the State of California’s credit rating (AA-).
Pico Rivera Innovative Municipal Energy (PRIME), the City’s locally-managed power provider, contributed to this impressive score by modeling the City’s conservative approach to spending. In recent years, the CCA has prioritized using available resources for state-funded programs and grant opportunities to expand customer offerings. Like many of Pico Rivera’s City Departments, PRIME developed a proforma with positive projections for the next 5-8 years, adding to the overall strength of the City’s fiscal outlook.
“S&P’s AA credit rating is great news for the City of Pico Rivera, as it puts us in a category with few other cities in the area and proves the effectiveness of our fiscal practices and long-term planning,” said Steve Carmona, Pico Rivera’s City Manager. “This superior rating enhances our City’s ability to finance municipal projects, including new renewable energy investments and infrastructure.”
CalChoice would like to congratulate Pico Rivera on achieving such high marks on its financial practices and economic outlook. The City’s community choice aggregation program, PRIME, is an associate member of CalChoice, and this AA score will allow the CCA to continue financing innovative renewable energy programs to benefit the community.