Moody’s Investors Service today upgraded Anne Arundel County’s bond rating from Aa1 to AAA. Today marks the first time the County has received an AAA rating from Moody’s, one of the three major credit rating agencies.
The rating keeps borrowing costs low for capital projects and reflects the County’s sound fiscal policies, prudent long-range planning, and robust economy.
“This upgrade is the result of a plan that I put in place three years ago to put our county in a more secure financial position,” said Anne Arundel County Executive Steuart Pittman. “It rewards us for having budgeted conservatively, spent responsibly, and invested in our future.
According to Moody’s rating analysis:
The upgrade of the issuer rating to Aaa from Aa1 reflects the county’s solid local economy that is experiencing ongoing expansion while its residents continue to boast very strong income levels. In addition, the Aaa reflects the county’s improved financial position that is expected to remain stable in 2022 given conservative budgeting and active control over operations. The county’s long-term liability profile is above national peers, but remains manageable given the ongoing economic and revenue growth.
According to a statement from Anne Arundel County Executive Pittman:
“In year one we stopped the exodus of underpaid teachers, police officers, and firefighters, and we created our permanent public improvements fund to keep up with our school, transportation, and public safety infrastructure. The year before that the county had exceeded its debt affordability by $76 million.
“In year two we tightened our belts in response to concerns about a pandemic recession. In year three we used our surpluses to prepare for future economic downturns by growing our revenue reserve fund and paying up front for capital projects. And we did all of that while keeping our taxes the lowest in the region.
“Moody’s doesn’t take these upgrades lightly. The analysts were clearly impressed not only by our financial management, but also by our positive business climate, our focus on the health and wellness of our most vulnerable residents, our smart growth land use planning, and our preparations for the impacts of climate change.
“This upgrade is a welcome sign that we truly are making Anne Arundel County The Best Place For All.”