Moody’s Upgrades Palmdale Debt

Moody’s Investor Service has upgraded its rating on the City of Palmdale’s lease-backed debt to A1 from A3, the city announced Friday. The upgrade affects approximately $45 million in outstanding certificates and bonds secured by lease payments for various public buildings and construction projects. “This is more good news in regards to the City of Palmdale’s manner in which we manage our fiscal responsibilities,” Palmdale Mayor Jim Ledford said in a prepared statement. “When we’re out talking to new businesses … we’ve got a great story to tell about how Palmdale is a solid investment for them, and a place they need to be.” Palmdale’s A1 rating suggests the city has a strong ability to meet its long-term financial commitments but may be somewhat vulnerable to the impact of turbulent economic conditions, according to Moody’s. The grade also reflects the standard legal structure for California lease financing and general obligation bonds.