Standard & Poor’s Wednesday upgraded its issuer credit rating for the San Diego County Employees Retirement Association to AAA from AA-plus.

The action was based largely on the improved credit quality of the pension system’s sponsor, San Diego County, though the ratings agency said it also considered the pension fund’s strong financial management and improving funding status.

In July, Standard & Poor’s upgraded the county’s general obligation debt rating to AA-plus from AA. The outlook on SDCERA is stable.

“The stable outlook reflects the expected maintenance of the county’s solid financial position and the association’s sound credit profile,” Standard & Poor’s analyst Colin MacNaught said in a news release. “The outlook also reflects maintenance of the board’s independence and strong management, as well as its improving actuarial funding levels.”

The system is a multiple-employer defined benefit plan for the county and four participating agencies. SDCERA provides retirement benefits for approximately 35,000 members and beneficiaries. It is not affiliated San Diego or that city’s pension plan.

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