News Details

Press Release: S&P Global Ratings Upgrades City Community Facilities District 2001-1 Bonds

S&P Global Ratings recently completed a rating review of City Community Facilities District (CFD) No. 2001-1 Special Assessment Bonds and has raised their long-term underlying credit rating of the outstanding Bonds from 'BBB’ to ‘A+,’ while affirming the stable outlook of the Bonds. This represents a significant upgrade reflecting strong financial fundamentals for the District.

The ratings reflect S&P’s view of the District's:

  • Strong economic fundamentals, reflecting strong median household effective buying income (EBI), access to a broad and diverse metropolitan statistical areas (MSA), a historically volatile real estate market, and relatively low unemployment rates
  • Adequate to strong district characteristics, such as little taxpayer concentration, a virtually developed tax base consisting of all residential parcels, a relatively small size based on 557 total parcels, and an adequate overall value-to-lien (VTL) ratio
  • Adequate to strong financial profile, reflecting the maximum-loss-to-maturity (MLTM) ratio, minimal taxpayer concentration, and a fully funded debt service reserve.

The stable outlook reflects S&P’s expectation that the local economy will remain strong given its access to a broad and diverse MSA, strong incomes, and low unemployment rates. The stable outlook also reflects the district's mature status of development. S&P anticipates that the District's collection rates, along with the reserve and surplus funds, will be sufficient for debt service payments.

It is to be noted that in December 2017, the City of Norco completed the sale of 2017 Special Tax Refunding Bonds for the Norco Community Facilities District Number 2001-1 (Norco Ridge Ranch). Proceeds from the 2017 Special Tax Refunding Bonds were used by the City to refinance the remaining outstanding balance of the District’s 2006 Refunding Bonds in order to generate significant future reduction in special taxes for property owners in the District.

The actual savings to property owners in the District will range between $446 and $608 in Fiscal Year 2018-2019 per parcel depending on lot size. The savings will gradually increase to a range between $686 and $936 per parcel by Fiscal Year 2027-2028 depending on lot size. The average annual savings range between $590 and $805 per parcel depending on lot size over the remaining life of the Bonds (through 2033). This represents nearly 15% in net present value savings over the old Bonds.

Read the full assessment here.

For more information, contact the Finance Division at (951) 270-5651 or

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