SOUTHERN CALIFORNIA / A news summary : The Regional Review / DEVELOPMENTS IN ORANGE, RIVERSIDE, SAN BERNARDINO AND VENTURA COUNTIES : Orange County’s Credit Rating Receives Boost

In a move that will drop the cost of borrowing money for jail construction and other major projects, a top Wall Street rating agency on Wednesday boosted Orange County’s once-dismal credit rating to its highest level since the 1994 bankruptcy.

A resurgent county government now has the second-highest bond rating of any county in the state, trailing only Contra Costa County, according the latest report by Moody’s Investor Service.

The upgrade highlights how far the county has improved since its financial collapse, when its credit rating plunged to junk-bond status, and represents another endorsement by Wall Street of its belt-tightening policies.

With an improved rating, the county can issue bonds without the same insurance costs or high interest rates required for subpar ratings. Officials have talked about issuing bonds to complete the expansion of the Theo Lacy Branch Jail in Orange or building a new courthouse in south County.

In real terms, the upgrade means the county could pay up to a half of a percent less in costs for future borrowings, said county Chief Financial Officer Gary Burton.

“There are nothing but positives here,” Burton said. “The whole county has been working hard to straighten out our financial affairs.”

Wall Street’s increasing confidence in the county’s finances is based on several factors, including its ability to keep its budget balanced and the $300 million the county will receive in settlements with firms it accused of causing the financial collapse.