The Montgomery County government has received a “triple-A” bond rating—the highest rating a local government can receive–for the 52nd year in a row, according to officials in a Monday news release.
“These credit ratings are proof that we have built a community with a robust economy, a diverse tax base and prudent fiscal policies,” County Executive Marc Elrich said in the release. “Our strong ratings allow us to invest more in critical projects—whether it is building new schools, expanding recreational facilities or enhancing transit infrastructure—while saving taxpayers millions in the long run.”
The ratings are determined by the three major Wall Street bond rating agencies and inform potential investors about the credit quality of the county’s bonds. By selling bonds, the county government can use the proceeds to fund various projects, particularly infrastructure development. A high rating indicates the bond is secure and that the issuer is financially strong enough to pay off its principal and interest, according to Investopedia.
According to the news release, the county has earned “triple-A” ratings from Moody’s Ratings every year since 1973, from S&P Global Ratings every year since 1976 and from Fitch Ratings every year since 1991.
“With prudence and collaboration, we have navigated through unprecedented challenges to fund schools, public safety and affordable housing at record levels, while investing in economic growth so we can maintain Montgomery County as a thriving community for residents and businesses,” County Council President Andrew Friedson (D-Dist. 1) said in the release.
In their reports, the three agencies expressed similar reasoning for the rating, noting the county’s “robust economy, large and diverse tax base;” as well as its location and financial policies and procedures, according to the release.
“A consistent ‘Triple-A’ rating puts the County among an elite group of the most fiscally sound in the nation,” council Vice President Kate Stewart (D-Dist. 4) said in the release. “We must continue to exercise strong fiscal policies and manage our budget responsibility.”
