I am pleased that Montgomery County has received positive ratings from two of the leading bond rating agencies. Moody’s Investors Service has assigned an Aa1 rating to Montgomery County’s Various Purpose General Obligation Refunding Bonds. Standard & Poor’s Ratings Services assigned its ‘AA’ long-term rating, and stable outlook, to Montgomery County.
Bond ratings measure the financial stability of an organization. The Aa1 and AA ratings indicate safe investment with low risk of failure. Both agencies take into consideration a wide variety of factors including the state of the local economy, the organization’s ability to pay its debt and the organization’s fiscal policies.
These accomplishments speak volumes about our commitment to exceptional financial management. These ratings are testimonies to the hard work and effective management practices of many county employees who strive to make sound financial decisions. Strong credit ratings also decrease the cost of servicing the county’s debt, saving taxpayers money.
I am proud to see the efforts of my staff help the county. We received a “Making Your Tax Dollars Count” award for excellence in financial accounting and a Certificate of Achievement from the Government Finance Officers for excellent financial reporting. It is satisfying to see those efforts pay off in the form of a strong credit rating that will save the county an estimated $3.5 million.
Moody’s stated, “We believe the county’s financial position will remain strong. Additionally, management has demonstrated a willingness to enact expenditure reductions and is committed to maintaining a balanced budget going forward.” Standard & Poor says “the county’s overall financial operations remain very strong.”
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