Montgomery County’s ‘Triple-A’ Bond Rating Streak Continues—Affirming Elite Status Among Nation’s Best Counties for Fiscal Management

For Immediate Release: Monday, September 11, 2023

Montgomery County Executive Marc Elrich and County Council President Evan Glass today announced Montgomery County has continued earning the highest possible bond ratings from all three major Wall Street bond rating agencies. Having maintained its “Triple-A (AAA or Aaa)” bond ratings for 2023, the County retains its status as a top-rated issuer of municipal securities, with the highest credit ratings possible for a local government.  

Moody’s Investors Service, Inc., Standard & Poor’s and Fitch Ratings all affirmed the AAA ratings—the highest achievable—for the County. Montgomery County has earned AAA ratings from Moody's Investors Service, Inc. every year since 1973 (51 consecutive years); from Standard & Poor’s every year since 1976 (48 consecutive years) and from Fitch every year since 1991 (33 consecutive years). 

 

“I am very pleased Wall Street’s financial watchdogs continue to view our well-managed County Government as an excellent investment opportunity,” said County Executive Elrich. “Montgomery County currently has an historic low unemployment rate, substantial growth in our technology and life sciences industries, as well as expansion of our hospitality and tourism sectors. Our economy has clearly rebounded well following the impacts from the COVID-19 pandemic. We appreciate Moody’s, S&P and Fitch for recognizing our stability and potential for growth. The AAA rating means that Montgomery County is a top-rated issuer of municipal bonds—roughly only 50 counties out of more than 3,000 nationwide earn such high marks for fiscal prudence. This distinction means we can borrow money for capital improvements by selling long-term bonds at the most favorable interest rates, which saves taxpayer money. Receiving a AAA rating is like having a perfect credit score. It allows us to spend more on our needs, like new schools, recreation centers, libraries and improved transit.” 

All three rating agencies emphasized Montgomery County’s robust economy, large and diverse tax base, proximity to the District of Columbia and well-established financial policies and practices. 

• The Moody’s report stated: “The county's financial position is expected to remain strong due to a healthy revenue base and management's use of long-term financial forecasting. . . . The county’s very strong management team actively manages operations and has a proven track record of keeping balanced operations.”
• The Standard & Poor’s report stated: “The ratings reflect our view of the county's affluent, broad and diverse economic base, located adjacent to Washington, D.C., with very strong wealth and income indicators; a sophisticated management team with comprehensive set of formalized financial policies and practices in addition to a very strong institutional framework score; strong financial position, supported by a robust economy and conservative budgeting, with maintenance of very strong budgetary flexibility; and affordable debt position, characterized by low overall net debt and rapid amortization of existing debt despite a large CIP [capital improvement program], in addition to manageable retirement costs.”
• The Fitch Ratings report stated: “Fitch views the county's financial resilience as superior, reflecting a combination of solid expenditure flexibility, demonstrated cost-cutting in response to weakened revenues and timely adjustments to revenue projections, which have resulted in consistent reserve levels through the economic cycle.”

The AAA bond ratings enable Montgomery County to sell long-term bonds at the most favorable rates, saving County taxpayers millions of dollars over the life of the bonds. The ratings also serve as a benchmark for numerous other financial transactions, ensuring the lowest possible costs in those areas as well. 

“Our AAA bond rating signifies that Montgomery County is among the most fiscally responsible local governments in the nation,” said Council President Evan Glass. “The County achieved this rating through strategic, long-term fiscal management combined with investments in economic development opportunities—which will continue to grow our tax base and strengthen our community.” 

The County maintained its AAA ratings even as three years of the COVID-19 health crisis severely shifted economic factors for local governments.

“What we need to recognize about this AAA bond rating is that we earned this rating despite significant challenges," said Councilmember Kate Stewart, who serves as chair of the Council's Government Operations and Fiscal Policy. “For instance, Federal pandemic money ended, even as Montgomery County’s costs for managing our pandemic response persisted. Additionally, this was a transition year, with a new and expanded Council. Despite these challenges, Montgomery County earned the best possible bond rating, and I’m proud to say it is because we demonstrate fiscal responsibility.” 

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Media Contact: Jennifer Garfinkel, 240-962-1506 or [email protected] 

 

Release ID: 23-388
Media Contact: Jennifer Garfinkel 240-962-1506
Categories: Budget, Budget, Business, Executive Office, Tax