Charles County announced that all three major national bond rating agencies: Fitch Ratings, S&P Global Ratings, and Moody’s Investor’s Service, have reaffirmed the County’s AAA bond rating. The ratings keep borrowing costs low for capital projects and reflect the County’s sound fiscal policies, prudent long-range planning, and robust economy.
“On behalf of the Board of County Commissioners, I am proud that all three agencies reaffirmed our AAA bond rating. This action shows continued confidence in the County, based on fiscal stewardship and proper management of our resources,” said Commissioner President Reuben B. Collins, II, Esq. “These ratings continue to affirm the importance of our policies and actions to promote a positive future for Charles County.”
The County will offer $50 million in general obligation bonds for public sale on Tuesday, November 1, to fund capital improvements in schools, general government facilities, and water and sewer projects.
According to Charles County:
“The rating reflects our opinion of the county’s broad stability and consistent growth in its economic and financial profiles,” states S&P Global Ratings.” Ongoing development will likely continue to provide strength for the main operating revenue (property and income taxes), facilitating strengthened reserves and covering growing service demands related to climate change, demographics, and development trends.”
Moody’s evaluation cites, “The rating considers the county’s strong financial management, with comprehensive fiscal policies and planning that has resulted in solid, stable reserves and liquidity. The AAA rating also incorporates the county’s slightly elevated debt burden and moderate pension liability, though fixed costs are quite manageable.” For the announcement, click here.
Fitch Ratings said they expect “Charles County to maintain a high level of financial flexibility throughout economic cycles, consistent with historical performance and supported by superior inherent budget flexibility in the form of an unlimited legal ability to raise revenues and solid expenditure flexibility. The ‘AAA’ rating also reflects solid revenue growth prospects from a growing property tax base and a low long-term liability burden.” To view the announcement click here.