Moody’s Investors Service assigned an Aaa rating to Baltimore County’s approximately $225 million Baltimore County Metropolitan District Bonds (84th Issue) and $30 million Baltimore County Consolidated Public Improvement Bonds – 2023 Series. In addition, Moody’s maintains an Aaa issuer rating and an Aaa rating for the County’s parity general obligation unlimited tax (GOULT) bonds. The outlook is stable.
The rating keeps borrowing costs low for capital projects and reflects the County’s sound fiscal policies, prudent long-range planning, and robust economy.
The Metropolitan District Bond proceeds will be used to refinance the County’s $150 million Baltimore County Metropolitan District Bond Anticipation Notes – 2022 Series, the proceeds of which were expended for the design and construction, purchase or acquisition of the water supply, sewerage, and drainage systems.
According to Moody’s analysis:
The County’s Aaa issuer rating reflects its notably stable tax base, with above average wealth and resident incomes. The rating also reflects the County’s strong financial performance, with healthy operating margins contributing to an ample $780 million available fund balance across all of its governmental funds, or roughly 28% of revenue as of unaudited 2022 financial statements.
The stable outlook reflects the County’s continued strong and stable taxable base, which provides ample support for its financial operations. Coupled with strong governance and conservative budget practices, we expect continued financial stability. While the county’s Metropolitan District (its business type utility) and overall elevated leverage position continue to be a credit concern, we expect that its ongoing proactive efforts to address certain challenges associated with the enterprise will have positive results in the near term.