Santa Monica received an economic shot in the arm this week, earning the highest rating granted by a major Wall Street credit-rating firm.
The city joined San Diego as the second municipality in the state to win Moody’s Investors Service’s top rating of Aaa on uninsured general obligation bonds, a Moody’s spokesman said. The announcement came only a week after Moody’s downgraded Los Angeles County’s credit rating.
The favorable credit rating--up from Aa1--means the city will be able to pay lower interest rates on money it borrows.
“The upgrade is really extraordinary in light of Orange County’s bankruptcy, the credit downgrades in Los Angeles County and the budget problems facing the state,” Santa Monica Finance Director Mike Dennis said.