SS/bonds.pr         96-108         Contact:  Tim Firestine, 301-217-2042
                                        David Weaver, 301-217-6530
COUNTY RETAINS TRIPLE-A RATINGS;
ISSUES $120 MILLION IN
GENERAL OBLIGATION BONDS      For Immediate Release:  March 21, 1996


     Having retained its triple-A bond rating from all three major rating
agencies, Montgomery County this week sold $120 million in general obligation
bonds at the low interest cost of 5.29 percent.  This is the second lowest
rate the County has paid in the last 18 years.  The triple-A ratings ensure
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 bond sale was the County's first since Montgomery County Executive
Douglas M. Duncan took office.  "I am very pleased that we retained our
coveted triple-A bond rating," said Duncan.  "It provides strong confirmation
that, in financial circles, our fiscal policies are seen as very sound and
that we have been prudent in our budget planning."
     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 four counties in the nation to receive
a Triple-A rating from all three rating agencies.
     The County received four bids and awarded the bonds to a syndicate
headed by Prudential Securities, which includes Smith Barney, Wheat First and
Legg Mason.
                                 - more -

COUNTY RETAINS TRIPLE-A RATING; ISSUES $120 M IN BONDS           2-2-2

     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 cited that
"favorable characteristics contributing to the prime quality rating include a
sizable and diverse tax and employment base, financial stability and a
moderate debt burden."  In addition, Moody's noted that "management has
successfully matched expenditures to a reduced level of revenues and
instituted a rate stabilization fund, in an effort to stabilize operations and
improve financial flexibility."
     Standard & Poor's noted similar factors, saying "the rating reflects a
strong and diversified economic base, high wealth levels, a well-managed
financial position, and moderate debt burden."  S&P also noted "the County's
financial position has stabilized after slower revenue growth and State fiscal
pressures contributed to reductions in reserves and reduced financial
flexibility ."

                                  #  #  #
     


     

Return to Montgomery County Press Releases Page.

---

County Home | About Your County | County Government | Services | Guest Book | Questions for the Executive
News | Phone Book | Business Development | Council | Related Resources

---