|In a report released this week, Standard & Poor’s (S&P) announced the underlying rating of the City of Chula Vista’s Redevelopment Agency’s outstanding tax allocation bonds has been raised one notch, from A- to A. The change reflected an improved outlook for the agency’s merged project area and was triggered when the city approached S&P to refinance 2000 tax allocation bonds. Bonds are being issued to generate $3.7 million to pay a portion of a loan due to the city. The merged project area includes more than 2,500 acres of mostly residential and commercial properties east and west of I-805.
Standard and Poor’s is the nation’s foremost provider of independent credit ratings. In its report, S&P attributed the raised rating to “the project area’s continued strong growth and diversification.”
“The upgrade will save taxpayers money,” noted City Finance Director Maria Kachadoorian. “It’s a positive and welcome trend after a year of serious belt-tightening. The improved rating translates into interest rate savings as we work towards refunding the 2000 tax allocation bonds.”