Frederick County Receives Top Bond Rating From Three Bond Rating Agencies

That’s the third consecutive year for this achievement.

 

Frederick, Md (KM). The three major bond rating agencies have given Frederick County their highest rating. FItch Ratings, Moodys and Standard and Poor have each given the county a AAA bond rating with a stable outlook. “These top ratings reflect the confidence the New York credit analysts have in the management of the county, the overall fiscal health of Frederick County, and what’s happening in our economy,” said County Executive Jan Gardner, who made the announcement during her Thursday public information briefing.

She said this rating benefits the county when it borrows money to pay for construction projects. “We want to have a strong rating from the bond rating agencies because it really can save taxpayers million of dollars where we get lower interest on the debt for our major construction projects,” she said.

Gardner says this is the third consecutive year Frederick County has received this AAA rating.

Unlike past years, when county officials traveled to New York City to make their pitch to the bond rating agencies, Gardner said representatives from Fitch, Moodys and Standard and Poor’s took a trip to Frederick County. She says they took a 61-mile tour of the county to see its schools, and other projects, including the construction of Kite Pharma’s facilities in Urbana. And they were impressed with what they saw. “In general, the credit analysts said Frederick County has a very strong economy and very strong fiscal management, and, overall, that we are well managed. As a result, we are collectively saving money for taxpayers,” Gardner says.

This AAA bond rating puts Frederick County is a unique class. “Frederick County is among a elite group of counties nationwide with the highest possible bond ratings from all three rating agencies,” says Gardner. “There are more than 3,000 counties in the United States, and only about 2%, or fewer than 50, have three AAA bond ratings.”

She also says this AAA bond rating will help¬† when the county¬† goes to the bond market next month. “Frederick County will get the get lowest possible interest rate on bonds that we plan to issue next month,” she says. “On September 10th, we plan to have a bond sale to sell bonds that we will use to pay for the construction of new schools, for roads and other transportation projects, libraries, parks, water and sewer projects and a few other things.”

 

By Kevin McManus