NORRISTOWN, PA – The Montgomery County Commissioners
announced today they received confirmation to the county’s coveted Aaa bond rating from Moody’s Investors Service for the third consecutive time.
In its reasoning for why Montgomery County deserves to maintain the highest credit rating possible, Moody’s cited the following strong points from its credit opinion:
- The Aaa rating reflects Montgomery County’s large dynamic tax base, with continued development underway despite the onset of the coronavirus pandemic.
- Top employers located in Montgomery County are very stable and include several pharmaceutical firms as well as state and county government.
- Resident wealth is satisfactory, the median family income is at 146 percent of the nation, and real estate tax revenue – the county’s primary revenue source – is stable year over year.
- The Aaa rating also considers the county’s modest debt and pension burden, and its overall strong financial profile, given consistent structurally balanced operations generating healthy surpluses. The county expects to report another strong surplus at fiscal 2020 year end.
- The Aaa rating also reflects the county’s robust reserve levels and that reserves will be maintained within a healthy range going forward.
A strong credit rating gives the County the ability to borrow money at the lowest interest rates possible. Additionally, reduced debt service allows the County to continue investing in critical infrastructure and improve services offered to Montgomery County residents.
“Despite this year’s challenges, Montgomery County is on sound financial footing,” said Dr. Valerie A. Arkoosh, Chair of the Montgomery County Board of Commissioners. “We continue to adhere to our fiscal priorities, invest in long term capital planning, improve our aging infrastructure, and work to maintain an appropriate fund balance. We are pleased to see this sound fiscal management has resulted in the County earning a Aaa bond rating from Moody’s Investors Service for the third time.”
Montgomery County sought the rating in anticipation of a series of two bond offerings on January 20, 2021:
- $93.445 million in General Obligation Bonds, Series A, to fund projects in the County’s ongoing five-year capital plan
- $12.3 million in General Obligation Bonds, Series B, for road and bridge capital projects
"Through careful budgeting and a new bond offering, we can continue our investments in the core functions of county government," said Kenneth E. Lawrence, Jr., Vice Chair of the Montgomery County Board of Commissioners. "By securing the highest possible credit rating, we can move forward with numerous projects to bring our roads, bridges, and trail network to a state of good repair."
To see a copy of Moody’s press release, click here