Cecil County Maintains Aa2 and AA+ Bond Ratings
FOR IMMEDIATE RELEASE
November 17, 2017
Elkton, MD. -- A well-managed budget, including not having to draw from the fund balance to cover normal operating expenses, had a lot to do with Cecil County's 2017 bond ratings as reported to the Office of Administration recently.
Moody's Investors Service has assigned a Aa2 rating to Cecil County's (MD) $51.8 million Consolidated Public Improvement and Refunding Bonds of 2017. Moody's maintains the Aa2 rating on the county's $227.4 million of parity debt outstanding. Moody's sites the Aa2 rating for 2017 on a "sound financial profile supported by conservative budgeting practices" and a "stable tax base with average socioeconomic factors."
Moody's Aa2 rating reflects the county's "moderately sized tax base with average demographics, stable reserve position and an above average, but manageable, debt position" as rationale behind the score.
Similarly, S & P Global maintained their AA+ rating for the County. S&P Global stated that the AA+ rating "reflects our opinion of the county's strong economy, with access to a broad and diverse metropolitan statistical area and a very strong management, with "strong" financial policies and practices under our Financial Management Assessment (FMA) methodology." S&P added, "Cecil County's budgetary flexibility is strong, in our view, with an available fund balance in fiscal 2017 of 14.0% of operating expenditures, or $25.6 million."
Director of Administration Al Wein said, "I strongly believe that County Executive McCarthy has set us on the path for future credit rating improvement through the prudent fiscal decisions that were made with the FY 2018 budget. We will build upon that foundation and are happy to maintain our high grade ratings of AA+ with S&P Global and Aa2 with Moody’s. Our team will continue to work to improve our credit ratings through the development of sound fiscal policies in an effort to save tax payer dollars."
County Executive Dr. Alan McCarthy added, "We are pleased and encouraged with the bond ratings we have received. It is evident that the agencies recognize our fiscal strengths and bond commitments. We will continue to work towards improving our budget and financial management practices in hopes of bettering our ratings going forward."
Both Moody's Investors Service and S&P Global are registered with the U.S. Securities and Exchange Commission and are accredited and nationally recognized statistical rating organizations. Bond credit ratings are used by investors to help determine the need and suitability of government bonds and the probability and feasibility of repayment by government agencies. Bonds are sold to fund Cecil County's capital projects and higher bond ratings ultimately saving taxpayers millions of dollars over the life of bonds.
For more information, contact:
Public Information Officer
Cecil County Government