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Laguna Beach outrates U.S. — briefly

August 22, 2011

Laguna Beach had a higher credit rating than the United States — but only for a week.

Standard & Poor's, one of the three rating agencies, downgraded the U.S. from AAA to AA-Plus on Aug. 8. For the next seven days, Laguna's rating was still AAA.

"The city's rating was higher because the city's general obligation bond had AAA rating," said city Treasurer Laura Parisi.

However, on Aug. 15, the 20-year general obligation bond, which provided the funds to buy parcels of land in Laguna Canyon, was paid off in full.

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"The payoff left the city debt-free, but with nothing to rate," Parisi said.

—Barbara Diamond

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