Moody’s Investors Service assigned Aa2 ratings to Baltimore City’s $45.2 million Consolidated Public Improvement Bonds, Series 2022A (Tax-Exempt), and $19.6 million Consolidated Public Improvement Bonds, Series 2022B (Taxable). The Series 2022A & B Bonds will finance various public improvements throughout the City.

The Aa2 ratings reflect the City’s sound fiscal policies, prudent long-range planning, and robust economy. In addition, Moody’s maintains the Aa2 rating on the City’s outstanding general obligation unlimited tax (GOULT) debt, and the outlook is stable.

According to Moody’s:

The Aa2 rating reflects the city’s sizeable, growing tax base that serves as an economic hub and benefits from institutional presence of higher education, health care, and government sectors. The rating also incorporates the city’s solid financial position that is expected to improve following a recent decline given a recent influx of federal and state funding, and recovering revenues. The rating further considers the city’s elevated debt and pension burden that has moderated somewhat following reforms and adherence to formal debt policies.

The Aa2 ratings keep borrowing costs low for capital projects, which is especially important now with inflation at a 40-year high, driving up costs for projects and routine service delivery — and the looming threat of a recession only adds fuel to the fire. At this year’s MACo Summer Conference, an expert panel will present a detailed economic outlook, share best practices for planning, budgeting, and forecasting, and discuss strategies for how counties can best prepare for future fiscal uncertainties.