Fitch Ratings has affirmed Queen Anne’s County’s AAA credit rating and assigned the same rating to the County’s upcoming $35 million public facilities and refunding bonds. The outlook remains stable.
The new bonds — scheduled for a competitive sale on October 1, 2025 — will fund capital projects and refund outstanding 2014 public facilities bonds for debt service savings.
The rating reflects Fitch’s confidence in the County’s fiscal management and long-term resilience. Firm reserves, conservative budgeting, and a diversified economy underpin the rating, which is the highest possible for local governments.
Why It Matters
Bond ratings have a direct impact on borrowing costs for major projects, such as schools, roads, and public safety facilities. An AAA rating allows the County to access capital at the lowest possible interest rates, saving millions in debt service over time and ensuring taxpayer dollars stretch further.
Highlights from Fitch’s Report
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Financial resilience: Fitch cited the County’s robust fund balance, with reserves averaging above 24% of expenditures over the last five years and reaching 37% in fiscal 2024. Fitch requires only 7.5% for a top-tier rating.
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Budget flexibility: Both revenue and expenditure flexibility were rated “High,” providing the County with the flexibility to adjust if conditions change.
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Demographics: Queen Anne’s is assessed as “Strongest” in unemployment, income, and education metrics, reflecting its position as a high-income commuter county.
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Liabilities: Debt and pension obligations remain manageable relative to the County’s economy and revenue base, with carrying costs at about 13.6% of governmental spending.
Broader Context
Queen Anne’s joins several Maryland counties with the top-tier Fitch rating, underscoring the importance of disciplined fiscal management and long-term planning.
The report also highlights a reality shared by counties across Maryland: while fiscal practices are strong locally, external cost pressures — from school construction to State-mandated services — remain a challenge.
Looking Ahead
Fitch noted that the County’s outlook will remain Stable as long as reserves stay strong and liabilities remain manageable. The upcoming bond sale underscores how the AAA rating translates into tangible value, resulting in lower borrowing costs and enabling taxpayers to stretch their dollars further on essential capital projects.
Queen Anne’s County’s continued top rating highlights the benefits of steady fiscal management and positions the County to meet future needs with confidence.
