Fitch Ratings upgraded Anne Arundel County’s credit rating from AA to AAA. The upgrade marks the first time the County has received an AAA rating from Fitch Ratings, one of the three major credit rating agencies.
The AAA rating applies to:
- General obligation (GO) bonds;
- $46.8 million special obligation bonds series 2014
- $1.065 million tax increment refunding bonds series 2014
- Issuer Default Rating (IDR)
Credit ratings are indications of the likelihood of repayment by the terms of the issuance. For example, the AAA rating keeps borrowing costs low for capital projects and reflects the County’s sound fiscal policies, prudent long-range planning, and robust economy.
According to the analysis from Fitch Ratings:
The upgrade of Anne Arundel’s IDR to ‘AAA’ reflects recent sizeable increases in operating reserves, which Fitch anticipates will remain above pre-pandemic levels due to recent increases to the county’s reserve policy. The county has generated substantial general fund surpluses in each of the past three fiscal years ending fiscal 2022. The ‘AAA’ rating also reflects the county’s notable increase in income tax revenues and steady assessed value appreciation, supporting solid revenue growth. Solid spending flexibility and a low long-term liability burden also factor into the rating.