Fitch Ratings this week affirmed Prince George’s County’s AAA bond rating in advance of the upcoming competitive bond sale. The rating keeps borrowing costs low for capital projects and reflects the County’s sound fiscal policies, prudent long-range planning, and economic stability.
Fitch Ratings assigned a AAA rating to the following Prince George’s County general obligation (GOs) bonds:
- $271,665,000 GO consolidated public improvement bonds, series 2021A.
The bonds are scheduled for negotiated sale on or about May 18, 2021. Proceeds from the series 2021 bonds will be used to fund various capital projects.
In addition, Fitch affirmed the following ratings:
- Issuer Default Rating (IDR) at AAA.
- Approximately $2.3 billion of outstanding county GO bonds at AAA.
- Approximately $17.2 million of outstanding lease revenue bonds (Metrorail parking projects), series 2014, issued by the Maryland Transportation Authority (MDTA), at AA+.
According to the Fitch Ratings analysis:
The ‘AAA’ GO rating and IDR is based on the strength of the county’s operating performance, which features a high capacity to manage operational and budgetary risks through the current coronavirus pandemic and future economic cycles, expectations for solid post-pandemic revenue growth underpinned by the county’s economic and demographic profile and high independent revenue-raising authority. The county’s expanding economy, coupled with its careful debt management practices, support a moderate, long-term liability burden despite ongoing infrastructure demands and large debt issuance plans.
