Standard & Poor's elevated Yorba Linda to the gilt-edged club Wednesday, upgrading the city's issuer credit rating to AAA from AA-plus.
The Orange County city, home to the Richard Nixon presidential library, was upgraded because it has adopted a policy requiring reserves to equal 50% of general fund operations, according to Standard & Poor's. General fund balances have exceeded 100% of operations since fiscal 2001.
The outlook is stable.
"The city's financial performance has been extremely strong, with a record of operating surpluses resulting in healthy fund balance reserve levels in the general fund," analyst Misty Newland said in a statement.
The upgrade to Yorba Linda's issuer credit rating also resulted in an upgrade to AA-plus from AA of Yorba Linda Public Financing Authority's series 2003 lease revenue certificates of participation.
