Sacramento's credit score has gone up just in time to pay for a new arena.
Standard & Poor's has upgraded the City of Sacramento's credit rating from A+ to AA-. City Treasurer Russ Fehr says that makes the city a better risk.
"Once you get into the AA's you're in kind of a high-grade credit quality, and that makes you a little more desirable to investors," Fehr said.
The better rating means the city can expect a better interest rate on the new King's Arena that is expected to cost the Sacramento between $20 million and $22 million in debt service a year.
"When all the revenue sources are fully mature, paying for the debt, about half of it will come from the project from lease payments from the Kings and taxes on the new facility and half of it will come from parking revenues," he said.
Standard and Poor's credits the city's strong financial management and budget flexibility for the better rating.