Fitch Affirms Montgomery’s AAA Credit Rating Ahead of Bond Sale

Fitch Ratings affirms Montgomery County’s AAA bond rating ahead of the upcoming competitive bond sale.

Fitch Ratings assigned a AAA rating to the following Montgomery County general obligation (GOs) bonds:

  • $280,000,000 Consolidated Public Improvement Bonds of 2020 Series A
  • $170,565,000 Consolidated Public Improvement Refunding Bonds of 2020 Series B

Seal of Montgomery County, MarylandThe superior ratings keep borrowing costs low for capital projects and reflect the County’s sound fiscal policies, prudent long-range planning, and economic stability.

In addition, Fitch has affirmed the following ratings:

  • Issuer Default Rating (IDR) at AAA
  • Outstanding general obligation bonds at AAA
  • (Metrorail garage project) lease revenue bonds, series 2011 at AA+

The bonds are scheduled for competitive sale on September 14. The proceeds of the series 2023A bonds will be used to refinance CP bond and anticipation notes, which financed capital projects in the County’s capital plan and directly finance other capital projects in the County’s capital improvement plan. The proceeds of 2023B bonds will refund outstanding general obligation bonds.

The Rating Outlook is Stable.

According to the Fitch Ratings analysis:

The ‘AAA’ IDR and GO bond rating reflect the county’s stable economic underpinnings, superior gap-closing capacity and low long-term liability burden. The ‘AAA’ rating is also supported by a demonstrated capacity to absorb revenue losses during periods of economic downturn and management’s ability to make sound fiscal decisions to restore and enhance the county’s financial cushion and operations during recovery periods.

Read the complete analysis for more information.