Fitch Affirms Howard’s AAA Rating in Advance of Bond Sale

Fitch Ratings has assigned ‘AAA’ ratings to the following Howard County general obligation (GO) bonds:

  • $83,935,000 Consolidated Public Improvement Refunding Bonds, 2020 Series E (Taxable)
  • $26,335,000 Metropolitan District Refunding Bonds, 2020 Series F (Taxable)

The GO bonds are backed by the County’s full faith and credit pledge and its unlimited taxing power. The bonds are scheduled to sell on a competitive basis on October 6, 2020. Bonds proceeds will be used to refund certain general obligation bonds.

The Rating Outlook is Stable.

In addition, Fitch has affirmed the following ratings:

  • Issuer Default Rating (IDR) at ‘AAA’
  • Outstanding GO bonds at ‘AAA’

According to the Fitch Ratings analysis:

Fitch expects Howard County to maintain a high level of financial flexibility throughout economic cycles, consistent with a long history of sound operating performance and healthy reserves. The county maintains superior inherent budget flexibility in the form of an unlimited legal ability to raise revenues and solid expenditure flexibility. The county’s strong financial profile also reflects strong revenue growth prospects from a growing property tax base, manageable expenditure growth and a demonstrated ability to reduce expenditures during economic downturns. Fitch expects the county’s long-term liability burden to remain low.

Read the full analysis for more information.