Moody’s Affirm Ratings for City Project, Says It Reflects Pasadena’s “Strong Wealth Levels”

Moody’s Investors Service Tuesday affirmed its Aa3 ratings and removed its negative outlook for the Pasadena Civic Improvement Corporation Certificates of Participation Refunding (Old Pasadena Parking Facility Project Of 1985) Series or COPs 1993.

The bond credit rating agency said the affirmation was made after the city secured and vowed to annually budget and appropriate its lease payments for the Pasadena Old Parking Facility.

Moody’s said the affirmation of the ratings reflects the city’s “large, moderately growing tax base [and] relatively strong wealth levels,” while the removal of the negative outlook shows Pasadena’s “stabilized operating trend.”

Although Moody’s described the city’s General Fund reserves levels as “narrow,” the agency said they are manageable given the city’s history of operating at narrower levels. The reserves and liquidity outside of the city’s General Fund also helps offset the weakness, Moody’s added.

The agency said it will continue to monitor the city’s “challenges,” which it reported are relatively low levels of General Fund reserves and an elevated pension burden.