County’s Bond Rating Stays at AAA

Montgomery County has maintained its AAA bond rating — the highest available — from all three Wall Street bond rating agencies, county Executive Ike Leggett said Tuesday.

The agencies called the outlook for Montgomery County as “stable.”

“The County’s budget management demonstrates a strong commitment to bolstering its reserve cushion in preparation for the next downturn,” said Fitch. “Given the County’s conservative management practices and emphasis on increasing reserves, operations are expected to remain strong.” Moody’s noted that “the county’s financial flexibility remains sound,” while Standard & Poor’s indicated that the county’s “financial practices are strong, well embedded, and likely sustainable.”

The AAA bond rating enables the county to sell long-term bonds at the lowest rates, saving taxpayers millions of dollars over the life of the bonds. The rating also serves as a benchmark for numerous other financial transactions, ensuring the lowest possible costs.

Leggett noted that the ratings were remarkable because other jurisdictions, including the federal government, have seen downgrades.

About Douglas Tallman

Reporter with 35 years experience throughout Maryland. Reach me at dtallman@mymcmedia.org or via Twitter at @MCM-Doug

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