2nd New York Firm Gives County Highest Possible Credit Rating

A second credit-rating firm has given Ventura County the highest mark possible, a score that could potentially save taxpayers millions of dollars.

The MIG 1 grade issued by New York-based Moody’s Investors Service means the county can continue to borrow money for its short-term investments at low interest rates.

Last week, the county’s other New York credit-rating firm, Standard & Poor’s Corp., issued a similar favorable report.

Officials had been concerned that the county’s disastrous attempt last year to merge mental health and social service departments would result in a lowered rating. The failed superagency sparked five state and federal audits into the county’s mental health system.

Controller Thomas O. Mahon was one of several officials who traveled to New York last month to tell agents that the county was financially sound, despite the audits that could result in the loss of millions of dollars in federal and state funding.

Mahon said the two high marks were a good sign that the county’s high credit rating for its long-term borrowing plan might also remain secure.

In the past, the county’s conservative investment approach and ability to maintain strong financial reserves have earned it a long-term bond rating between A+ and A-. Last year, it received an A-.

Mahon was hopeful that the bond rating would not be bumped to a B, making it more expensive for the county to borrow money for long-term public projects.

The county is evaluated for its credit-worthiness each time it borrows money for a long-term project. Currently, the county has no plans to seek a new long-term loan, Mahon said.

“If we do have a problem, that might happen with the long-term rating,” Mahon said. “But I think we have it under control. We keep the rating agencies advised about what is happening here.

“It’s fairly standard in government to have something come up,” Mahon added. “At least right now there are no floods or fires.”