Santa Clara County Receives AA-Plus Ratings for Lease Revenue Bonds

The Santa Clara County Financing Authority received AA-plus ratings from Fitch and S&P for its $456.35 million series 2026B lease revenue bonds, which are scheduled to price the week of Oct. 12. Proceeds from the bond sale will fund capital projects and seismic improvements at medical facilities across the county. Fitch affirmed Santa Clara County's AAA issuer default rating and outstanding general obligation bonds at AAA, while S&P affirmed the county's AAA issuer credit rating and assigned a stable outlook.

The ratings affirm the county's financial standing, though S&P noted the stable outlook reflects exposure to shifting federal and state policy priorities. Analysts stated that maintaining credit quality depends on strategic budgeting choices, including general fund support for healthcare operations. S&P warned that a negative rating action could occur if budgetary performance significantly declines without a credible plan for balance restoration.