Fitch Ratings this week affirmed Montgomery County’s AAA bond rating in advance of the upcoming competitive bond sale.
Fitch Ratings assigned a AAA rating to the following Montgomery County general obligation (GOs) bonds:
- $320,000,000 Consolidated Public Improvement Bonds of 2020 series A
- $167,275,000 Consolidated Public Improvement Refunding Bonds of 2020 series B
- $364,600,000 Consolidated Public Improvement Refunding Bonds of 2020 series C (Federally Taxable.)
The bonds are scheduled for competitive sale on July 16. The proceeds of the series 2020A bonds will be used to refinance a portion of certain commercial paper bond anticipation notes, the proceeds of which financed certain capital projects in the County. The series B and C bonds will be issued to refund a portion of outstanding GO bonds for debt service savings.
According to the Fitch Ratings analysis:
The ‘AAA’ IDR and GO bond rating reflect the county’s stable economic underpinnings, superior gap-closing capacity and low long-term liability burden. A demonstrated capacity to absorb the constraints of recessionary revenue environments and the fiscal decision-making to proactively restore and enhance the county’s financial cushion and operations during recovery periods, support the ‘AAA’ rating.