Fitch Ratings has reaffirmed the ‘AAAf/S1’ rating on the San Diego County Investment Pool, county officials said Thursday.
This marks the 25th straight year the county’s investment pool has received a AAA rating, the highest rating category.
“Fitch deems the overall portfolio quality to be sound and concentrations are managed prudently,” the ratings agency wrote.
The ‘AAAf’ rating reflects the investment portfolio’s vulnerability to losses and is based on the actual and expected credit quality of the portfolio’s investments. The ‘S1’ Fund Market Risk Sensitivity Rating reflects the low sensitivity of the portfolio to market risk.
“Our investment pool reached $18.1 billion in public funds in April, thanks to the diligent management by our investment team,” said San Diego County Treasurer-Tax Collector Dan McAllister in a news release. “They value three principles: safeguarding the principal of the invested funds, meeting the liquidity needs of our pool participants and achieving an investment return within the parameters of prudent risk management.”
The Treasurer-Tax Collector’s team invests the funds in high quality, fixed income securities on behalf of the pool’s participants, who use the money for the operational and capital needs of their agencies.
“The Fitch rating process is an important measure of our county’s fiscal strength and future,” said Supervisor Nora Vargas, chair of the county Board of Supervisors. “This rating is a testament to our commitment to responsible financial management, ensuring that the public’s funds are handled with care and integrity.”
Currently, over 200 public agencies in the San Diego region invest in the pool, including all 42 public school districts, five community college districts, the San Diego Regional Airport Authority and other public agencies such as cities, fire water districts and regional agencies.
In addition to the county’s team of full-time investment professionals, a nine-member oversight committee comprised of county, school and public agency officials and five public members reviews the investment policy statement annually.