NEW YORK - Standard & Poor's Ratings Services said it has raised its issuer credit rating (ICR) on the city of Upland, Calif., to AA-minus from A-plus. At the same time, the rating service raised its long-term rating and underlying rating (SPUR) on Upland Public Financing Authority, Calif.'s lease-revenue debt, supported by Upland, to A-plus from A. The outlook is stable.
The upgrades reflect Standard & Poor's opinion of the city's maintenance of a consistently very strong reserve levels.
Additional credit factors reflected in the rating include Standard & Poor's view of the city's: location in San Bernardino County (A-plus certificate of participation rating), on the Los Angeles County border; diverse property tax base that has grown by a strong 9.5% compound annual rate over the past five years; strong income levels on median household basis; and manageable debt burden.
"We expect that the residential nature of the city, coupled with its fund balance policy, should allow it to maintain a sound financial position. In addition, we believe that the lack of any plans to issue additional debt should keep the overall net debt at a moderate level," said Standard & Poor's credit analyst Michael Taylor.
Upland's location within the Riverside-San Bernardino metropolitan statistical area and its proximity to the Los Angeles County (AA-minus ICR) economic base, in Standard & Poor's view, provides this bedroom community of 75,035 residents with numerous employment and commuting opportunities.
