Rating Agency Rates Montgomery County

Header--Montgomery County, Maryland. Press Releases

db/bond.pr 98-129

Contact: Tim Firestine, 301-217-2042
or David Weaver, 301-217-6530
For Immediate Release: April 24, 1998

Rating Agency Rates Montgomery County
"AAA" for 25th Consecutive Year

Montgomery County bonds have been rated triple-A for the 25th consecutive year by Moody's Investor's Service, one of the three major bond rating agencies. The County's bonds were also designated triple-A by Standard and Poor's Corporation and Fitch IBCA, the other two rating agencies. The triple-A ratings ensure that the County will pay the lowest cost on debt issued to pay for its capital projects and help to save the County millions of dollars in interest expenses over the 20-year life of the bonds.

The County recently sold $115 million in general obligation bonds at the low interest cost of 4.76 percent.

"I am extremely proud that Montgomery County has maintained its long history of triple-A ratings from Moody's," said County Executive Douglas M. Duncan. "The triple-A rating demonstrates the soundness of our fiscal policies, and it plays a significant role in our financial well-being -- which is why we work so hard to protect it."

"By earning our 25th consecutive triple-A rating from Moody's, this County has demonstrated its long-term commitment to strong fiscal planning and saving taxpayer dollars," said County Councilmember Marilyn J. Praisner. "The low interest cost for this latest bond sale translates into millions of dollars in savings."

The County's bonds received the highest rating possible by Moody's Investors Service, Inc., Standard & Poor's Corporation, and Fitch Investors Service, Inc., the three major bond rating agencies.

Montgomery County is one of only five counties in the nation to receive a triple-A rating from all three rating agencies. The County received six bids and awarded the bonds to First Union Bank.

Proceeds from the sale of the bonds will be used to provide permanent financing of capital projects, such as public schools, libraries, roads and other county facilities.

In confirming the triple-A rating, Moody's Investors Service pointed to the County's "sizable and diverse economy, well-managed financial operations, and well above average wealth and housing values." The company also noted that "the County is a major job leader in the state, adding more than 10,000 net new jobs annually," and that "Moody's anticipates that the County will continue to add depth to its traditional dependency on federal employment, with expansion of its business, high-tech and biotech industries."

Standard & Poor's noted similar factors, saying "the financial position is strong and management continues to practice conservative budgetary methods." S&P noted that "despite slower economic growth, the County's strong debt and fiscal policies will maintain sound financial performance and manageable debt."

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