Fitch Affirms Carroll’s AAA Bond Rating

Fitch Ratings this week assigned AAA ratings to the following Carroll County general obligation (GO) bonds:

  • $29.4 million consolidated public improvement and refunding bonds of 2020 (Series A)
  • $25.3 million taxable refunding bonds of 2020(Series B)

The GO bonds are backed by the County’s full faith and credit pledge and its unlimited taxing power, for which the County is empowered and directed to levy unlimited ad valorem taxes.

The Rating Outlook is Stable.

In addition, Fitch has affirmed the following ratings:

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

The superior ratings keep borrowing costs low for capital projects and reflect the County’s sound fiscal policies, prudent long-range planning, and economic stability.

According to the Fitch Ratings analysis:

The ‘AAA’ IDR and GO rating reflect the county’s demonstrated ability to maintain healthy financial flexibility. Along with sizable reserves, the county’s broad revenue-raising authority and spending flexibility support its superior level of inherent budget flexibility to address periods of economic distress, including the current downturn. Long-term liabilities are expected to remain low, reflecting manageable future issuance plans. Revenue growth prospects are expected to remain solid in the post pandemic period.

Read the full analysis for more information.

Useful Links

Conduit Street Podcast: Bond Rating Basics