Bond rating agencies Moody’s Investors Service, Standard & Poor’s Ratings Services, and Fitch Ratings affirmed the county’s high ratings for general obligation bonds. Standard & Poor’s and Fitch assigned Charles County’s general obligation bonds an “AAA” rating, the highest rating issued by the agencies. Moody’s assigned an “Aa1” rating, and upgraded Charles County’s financial outlook to “positive” from “stable.”
The revised outlook received from Moody’s Investors Service increases the county’s chance of receiving a rating upgrade from the agency in the next 12-18 months. According to a Sept. 28 news release issued by Moody’s, factors that could result in a rating upgrade include continued growth and diversification of the tax base and continued positive budget-to-actual operations, resulting in stable reserves.
On behalf of the Board of Commissioners, Charles County Commissioner President Peter F. Murphy said, “Such favorable bond ratings reflect Charles County’s strong fiscal management and the vibrancy and health of our local economy. We are pleased with the rating results, and expect Charles County to remain financially stable and well positioned for the future.”
In an Oct. 2 announcement, Fitch identified the county’s stable reserve levels, healthy debt profile, and its narrow yet stable and wealthy economy as key rating drivers. Fitch noted Charles County’s economy “benefits from the presence of a naval research facility as well as a location proximate to the employment centers of Washington D.C. and northern Virginia.
“The confirmation from all three rating agencies of our excellent bond ratings is their professional evaluation of many factors within Charles County, such as our economy, debt structure, financial condition, demographics, and management practices. The high-grade ratings continue to show financial markets that Charles County bonds are a good investment. The ratings will also help us receive lower interest rates on our long term debt, as demonstrated by the 2.47 percent interest rate received on Oct. 6. These bonds will help fund the cost of infrastructure needed throughout the county for schools, roads, water, and sewer,” said David Eicholtz, director of Fiscal and Administrative Services. “I certainly appreciate the respect Fitch, S&P, and Moody’s are showing Charles County with our rating confirmations.”
In September, county officials traveled to New York and met with bond rating experts who reviewed the health and stability of the county based on budget management, external audits, financial management, and economic development. Bond proceeds will be used to fund various capital projects for the Board of Education, water and sewer system, stormwater system, and road maintenance.