Fitch Ratings has assigned an “AAA” rating to Charles County’s $69.2 million Consolidated Public Improvement Bonds, Series 2025, and affirmed the County’s Issuer Default Rating (IDR) and outstanding general obligation bonds at the same level. The outlook remains “Stable.”
The bonds, expected to sell competitively on November 18, will fund a wide range of County projects — from school construction and government facilities to park improvements and water management systems.
Fitch’s report highlights Charles County’s conservative financial management, growing economy, and consistently robust reserves, confirming the County’s continued place among Maryland’s highest-rated jurisdictions.
Why It Matters
An AAA rating allows Charles County to borrow at the lowest possible interest rates, lowering costs for significant capital projects and maximizing the value of taxpayer dollars. The designation reflects confidence in the County’s capacity to sustain balanced budgets, manage debt responsibly, and support steady economic growth.
Highlights from Fitch’s Report
Financial strength: Fitch credited the County’s high midrange budgetary flexibility, supported by substantial fund balances that have equaled at least28% of spending over the last five years and reached 36.8% in fiscal 2024.
Revenue stability: Fitch noted “strongest” revenue performance, with steady growth even through past downturns — underscoring the County’s ability to maintain services through economic cycles.
Demographics and growth: Charles County’s population grew 17% since 2010, outpacing both Maryland and the nation. Fitch assessed population and income metrics as “Strong,” supported by low unemployment and continued residential growth tied to the County’s proximity to Washington, DC.
Liability management: The County’s debt and pension obligations remain moderate, with carrying costs at 12% of governmental spending, reflecting effective debt amortization and prudent borrowing practices.
Broader Context
Charles County’s fiscal strength aligns with a broader trend across Maryland counties, where conservative financial management and long-term planning continue to earn national recognition.
The County’s growing population and infrastructure investment needs highlight the importance of maintaining predictable State–local funding partnerships, especially as costs rise for schools, transportation, and public safety facilities.
Looking Ahead
Fitch’s Stable Outlook signals confidence that Charles County will continue managing liabilities effectively while maintaining robust reserves. The new bond issuance ensures that priority projects — from classrooms to community parks — can move forward without placing additional strain on taxpayers.
