Charles County Director of Finance David Eicholtz
La Plata, MD – Good fiscal policies and the slow climb out of recession are two factors Charles County can claim after receiving a AAA rating, the first time ever the county has been recognized my financial maven Moody.
Charles County was awarded the news Thursday, Oct. 20.
“In the past, the county has been awarded Triple A status by the other two financial institutions, Standard & Poor and Fitch,” Charles County Director of Finance David Eicholtz said. “Moody is considered the most conservative of the three. This is the first time we’ve gotten such a high bond rating from Moody.”
That the county has received the highest rating from all three agencies says a lot, he noted.
Eicholtz said the financial difficulties the county experienced as recently as 2014 were the result of an economic downturn which took longer than expected to turn itself around.
“Obviously, the struggles we were having earlier were the result of coming out of the recession,” he explained. “Property values were not rebounding as fast as the rest of the economy. That resulted in a lagging economic recovery.”
Those fortunes have slowly begun to reverse, he added, noting that what this means is more money is being realized from property values and property tax than even two years ago.
So what does this mean for the average citizen of Charles County?
“You always want your highest bond rating,” Eicholtz said. “It can’t go any higher than AAA. The rateing agency accesses how well the county can repay its debt. A high rating results in a lower interest rate when you go to borrow money for projects.”
“Receiving a bond rating upgrade to the highest level is good news,” said Charles County Commissioner President Peter F. Murphy [D]. It is solid proof that our local economy is healthy and strong.”
“Earning a bond rating upgrade is an important achievement that will have a positive ripple effect in our economic development efforts and increase the quality of life for Charles County residents,” said County Administrator Michael D. Mallinoff. “The board of commissioners, senior management, and staff worked together to adhere to strong fiscal practices, resulting in an outstanding rating outcome.”
Contact Joseph Norris at joe.norris@thebaynet.com
