Leonardtown, MD – Moody’s Investors Service has assigned an Aa2 rating to St. Mary’s County’s $25 million Consolidated Public Improvement Bonds, Series 2016. The announcement comes on the day when commissioners voted to approve the sale of the bonds. In its report Moody’s also affirmed the Aa2 rating on the county’s $32.6 million of general obligation (GO) debt outstanding. The firm revised the county’s outlook to positive.
The agency’s attributes the rating to “the county’s sizeable and stable tax base,” anchored by NAS Patuxent River, above average resident wealth levels, health reserves, liquidity supported by formal fiscal policies, and low debt and pension burdens.
“I’m very excited that we’ve received a second positive rating in as many weeks,” said Jeannett Cudmore, Chief Financial Officer. “This is an indication that our conservative fiscal policies continue to serve us well as we continue down a somewhat uncertain fiscal path.” One week ago Fitch affirmed the county’s AA+ rating on the same debt.
Moody’s decision to revise its rating outlook reflects the county’s stable technology-based local economy which will “likely continue to experience growth given further development within the technology sector as well as other industries.” The firm also pointed to the county’s plan to rebuild reserves given a change from cash-funding pay-go capital projects to issuing debt.
The agency says the county’s rating could receive an upgrade if reserves increased as a result of the reduction of pay-go capital projects and continued growth in the tax base.
“This ratings report comes as very good news as we prepare to place $25 million in bonds on the market,” said Commissioner President Randy Guy. “We were very encouraged during our meeting with Moody’s in early June and believe our fiscal policies will continue to reap rewards for the citizens of St. Mary’s County.”
To download a copy of the report go to: http://www.stmarysmd.com/docs/Moodys%20Rating%2006.28.2016.pdf
