PALMDALE – The city of Palmdale has announced that Moody’s Investors Service has upgraded the rating on the city’s lease backed debt to A1 from A3.
This rating action affects approximately $45 million in outstanding certificates of participation and lease revenue bonds. The bonds are secured by lease payments made by the city, for use and occupancy of leased assets, which include Certificates of Participation (2002 Park Improvements and Avenue S Construction Project) for City Hall, Palmdale City Library, Chimbole Cultural Center, park land and improvements, and street improvements; and the leased asset for the Lease Revenue Refunding Bonds Series 2012 is for the city’s development services building and the South Valley WorkSource Center.
Under Moody’s rating system, obligations rated A are judged to be upper-medium grade and are subject to low credit risk.
The city of Palmdale’s A1 rating is one notch lower than Moody’s Aa3 Issuer Rating. According to Moody’s press release issued on Oct. 12, “The notching reflects a standard legal structure for a California abatement lease financing and leased assets that Moody’s views as ‘more essential.’ The notching also reflects the strong legal features of California general obligation bonds that are not shared by lease revenue debt.”
“This is more good news in regards to the City of Palmdale’s manner in which we manage our fiscal responsibilities” stated Palmdale Mayor Jim Ledford. “Our City Manager Jim Purtee and finance team have done an outstanding job of refinancing debt, keeping costs down, and balancing our budget. When we’re out talking to new businesses, investors, manufacturers and retailers, we’ve got a great story to tell about how Palmdale is a solid investment for them, and a place they need to be.”
“This is the path we’re focused on,” stated City Manager James Purtee. “We have strong direction from our Mayor and Council to engage in sound fiscal management policies as we move ahead to create a world-class city for our residents to live, thrive, work and enjoy.”
About Moody’s Investors Service
Moody’s Investors Service is a leading provider of credit ratings, research, and risk analysis. The firm’s ratings and analysis track debt covering more than 120 sovereign nations, approximately 11,000 corporate issuers, 21,000 public finance issuers, and 72,000 structured finance obligations. Moody’s Investors Service is a subsidiary of Moody’s Corporation (NYSE: MCO), which reported revenue of $3.5 billion in 2015, employs approximately 10,800 people worldwide and maintains a presence in 36 countries. Further information is available at www.moodys.com.
[Information via news release from the city of Palmdale.]
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William says
I’m so glad I selected Palmdale when I was house hunting in 1990. I dint know nuttin ’bout the 2 city’s politics.
I suspect that many new home buyers in Lancaster the last dozen years are surprised at what a crummy city they plunked down their hard earned $$$s for.
Half empty shopping centers absent their anchor grocery stores, the fabulous blvd to nowhere, thrift stores, auto wreckers and undue influence by a certain church group..
What’s not to like?
Vic says
Meanwhile in Lancaster……
This is one more good reason to avoid any and all Rex or Lancaster backed candidates. Palmdale is moving forward, while Lancaster falls behind. The backwards nepotism and good old boy way of doing things continues to plague a once great city.
Maybe after Parris and his henchman are finally gone, Lancaster can move forward again.
Tim Scott says
Well, Lancaster actually has never been a great city. The people who led the incorporation push were only interested in lining their own pockets and have handed the city down the tubes in a pretty much uninterrupted chain. Wrecks is probably the worst, but he is certainly not the first…and if you think he and his henchmen haven’t already chosen the next hinge pin their fortunes will pivot on you are dreaming.
Palmdalian says
Lancaster has been financially pilfered by the Unholy Triune of Gilley, Visco, and Parris. Do not let them do the same to Palmdale. Do not support Lancaster backed candidates in Palmdale.
Tim Scott says
Agreed 100%.
https://www.facebook.com/PalmdaleFirst/
The candidates supported here have been vetted to NOT be on Lancaster’s back channel payroll. If for some reason you don’t want to support them please make the effort to properly vet whoever you do choose to support. There is at least one Lancaster funded conspirator on the ballot in every district.
William says
@ Tim Scott
Do you have their names? I’ve read many references here to them but no names.
I’m voting per the mailing I got from Mayor Ledford and his preferences. He’s done an excellent job for over 2 decades and I don’t want some jerks to move us backwards………….y’know, like Lancaster.
I don’t know how much further down the hole rex has dug that Lancaster can go. The city has no real attractions to speak of, not shopping, dining, what? the boolvard?
Tim Scott says
Martinez, Thompson, Bettancort, Corrales, depending on your district. Plus Ledford, obviously. Those are definitely not Rex minions and are vetted by Palmdale First.
Hofbauer in district 2 isn’t a Rex minion, I’m pretty sure.
I know in districts 3 and 4 there are only two candidates, the Palmdale First vs the Rex minion.
Vic says
These are the best choices if you wish Palmdale to remain free from Lancaster’s control. If you like what’s going on in Lancaster, then by all means vote for the ones who are getting the money and have the favor of Rex, Marv, etc.
If however you like the direction Palmdale is heading, with lower crime, job growth, virtually all the new businesses and restaurants, higher bond ratings, higher median income, higher median housing, no cronyism, and a mayor who doesn’t think bird sounds lower crime, then stick with what is working. Palmdale First candidates.