Charles County- Charles County, Maryland, has once again secured its fiscal standing as all three major national bond rating agencies, namely Fitch Ratings, S&P Global Ratings, and Moody's Investor's Service, reaffirmed the county's AAA bond rating. This exceptional credit rating underscores the county's robust financial health and prudent management, ensuring it can continue to benefit from low interest rates when repaying bonds.
The bond rating experts comprehensively reviewed Charles County, considering key factors such as budget management, external audits, financial management, and economic development. Their unanimous decision to uphold the AAA bond rating reflects the county's commitment to fiscal responsibility and administrative soundness.
Commissioner President Reuben B. Collins, II, Esq., expressed his delight at the news, emphasizing its importance for the county's future. "Retaining our AAA Bond Rating is a clear sign of the optimal future for Charles County. Having all three agencies once again confirm our status as a fiscally responsible and administratively sound county is also a clear reflection of the diligent work that our dedicated staff does daily," he stated, highlighting the dedicated efforts of county staff.
The S&P Global Ratings report acknowledged Charles County's positive fiscal performance in 2022 and its anticipation of utilizing reserves for one-time expenses in fiscal 2023, all while maintaining very strong reserves and liquidity. The report also highlighted the county's robust economic growth, which is expected to continue bolstering its primary operating revenue sources, including property and income taxes. The agency recognized that this growth would help Charles County address the escalating service demands associated with climate change, demographics, and development trends while prudently managing reserves.
Moody's Investor's Service echoed the positive sentiment, stating that the stable outlook is based on their expectation that the county's local economy will remain robust, ensuring strong finances despite planned draws through 2024. These draws are primarily driven by the county's intended one-time capital project funding and do not signify structural changes that would indicate declining reserves. Moody's report commended Charles County's notable financial controls and revealed that the fiscal 2024 General Fund budget is 3.3% higher than that of fiscal 2023.
Fitch Ratings further bolstered Charles County's financial reputation, expecting the county to maintain high financial flexibility throughout economic cycles. The 'AAA' rating reflects solid revenue growth prospects derived from a growing property tax base and a low long-term liability burden, underscoring the county's strength and resilience.
In light of these favorable credit ratings, Charles County is set to proceed with the public sale of its $55 million consolidated public improvements bonds on Tuesday, November 14. These bonds will fund critical capital improvement projects, including substantial education and public infrastructure investments.
The projects earmarked for financing by the bonds include additions and renovations to Board of Education facilities, renovations and additions to College of Southern Maryland facilities, new school construction under the Board of Education, improvements to various general government facilities, park projects, road and bridge improvements, watershed protection and stream restoration projects, and essential water and sewer projects.
Charles County's ability to secure its AAA bond rating reinforces its financial stability and fiscal responsibility, creating an environment conducive to sustainable economic development and a bright future for its residents.
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