Carroll County this week sold $70 million of bonds at historically low interest rates, a direct reflection of the County’s recent AAA credit rating from all three major financial rating agencies.
Comptroller Robert Burk said the new bonds were sold at an interest rate of 2.19%. The interest rate on refinanced debt — 1.39% for tax-exempt and 2.27% for taxable bonds — will save the County over $5 million.
“We are thrilled to receive the triple AAA credit rating again which helped result in such extraordinary-low interest rates on our bond sale,” said Board of County Commissioners President Stephen Wantz, “Our strong financial position, balanced financial management, and strong fiscal planning is critically important as it is reflected in the positive credit rating and ultimately saves the county millions of dollars.”
According to a press release:
A total of $70 million in new bonds were sold by the county, including $30 million for new issues dedicated to various infrastructure and other capital investments, and $40 million to refinance existing debt at lower rates.
Last week, the county received confirmation from all three credit rating agencies that the AAA ratings, achieved last year, are re-affirmed with a stable outlook, with S&P noting, “We anticipate Carroll County will maintain its strong flexibility and strong budgetary performance. The county’s very strong management policies, as evidenced by its robust future financial planning and its integrated capital plan, allow it to respond to changes in revenues and expenditures annually.”
Fitch indicated the rating reflects, “the county’s broad resource base, strong growth prospects, ample reserves, and robust financial resiliency.” Moody’s cited, “The Aaa rating is based on the ongoing expansion of the county’s large tax base and growing revenue streams, resulting in a consistently healthy and stable financial position.”
