Fitch Ratings has again affirmed Calvert County’s AAA credit rating with a stable outlook and assigned the same top rating to nearly $76 million in new general obligation bonds.
Fitch assigned a AAA rating to $75.955 million in Consolidated Public Improvement Bonds, which Calvert County plans to sell competitively on or around September 29. The County will use the proceeds to finance public improvements.
The agency also affirmed Calvert County’s Issuer Default Rating and outstanding general obligation bonds at AAA. Fitch maintained a stable outlook.
The AAA rating allows the County to borrow at favorable interest rates, helping reduce financing costs for infrastructure and other capital investments.
Strong Reserves and Financial Flexibility
Fitch pointed to Calvert County’s financial resilience, including substantial budgetary flexibility and strong control over revenues and expenditures. The County ended fiscal 2025 with a fund balance equal to 38% of expenditures, while its fund balance remained above 30% throughout fiscal 2021 through fiscal 2025.
Fitch expects the County to maintain reserves above 7.5% of expenditures, the threshold supporting its current financial resilience assessment. A decline below that level could put downward pressure on the rating.
Strong Economic Profile and Low Liability Burden
Calvert County also received strong marks for its broader economic profile. Fitch cited relatively high median household income, educational attainment, and low unemployment compared with other local governments in its ratings portfolio.
The County’s long-term liabilities also remain relatively low. Fitch placed Calvert in the 81st percentile among rated local governments for its long-term liability profile, reflecting debt, pension obligations, and other carrying costs relative to the County’s resources.
Fitch identified potential pressure on the rating if long-term liabilities increase substantially, reserves fall below established levels, or the County becomes significantly more reliant on payment-in-lieu-of-taxes agreements. With AAA already representing Fitch’s highest rating, the agency listed no potential upgrade.
Stay tuned to Conduit Street for more information.
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