Montgomery County Secures ‘Triple-A’ Bond Rating for 52 Consecutive Years, Underscoring Decades of Fiscal Excellence and Strong Management

For Immediate Release: Friday, September 20, 2024

Montgomery County Executive Marc Elrich and County Council President Andrew Friedson today announced that Montgomery County has extended its streak of earning the highest possible bond ratings from all three major Wall Street bond rating agencies. By maintaining its "Triple-A (AAA or Aaa)" bond ratings for 2024, the County remains a top-rated issuer of municipal securities, holding the highest credit ratings achievable by a local government.

Moody's Ratings, S&P Global Ratings and Fitch Ratings all affirmed the AAA ratings-the highest achievable-for the County. Montgomery County has earned AAA ratings from Moody's Ratings every year since 1973 (52 consecutive years), from S&P Global Ratings every year since 1976 (49 consecutive years) and from Fitch Ratings every year since 1991 (34 consecutive years).

"Maintaining our 'Triple-A' bond rating for 52 consecutive years is a remarkable achievement that reflects the strength and stability of Montgomery County," said County Executive Elrich. "These credit ratings are proof that we have built a community with a robust economy, a diverse tax base and prudent fiscal policies. Our strong ratings allow us to invest more in critical projects-whether it is building new schools, expanding recreational facilities or enhancing transit infrastructure-while saving taxpayers millions in the long run. With only about 50 counties nationwide earning this distinction, we are in elite company. It is a testament to the hard work and collaboration of our entire County, and I am pleased to see Wall Street's continued confidence in our future."

All three rating agencies emphasized the 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 Ratings report stated: "The affirmation of the County's outstanding rating reflects its very strong and dynamic local economy outside of Washington D.C., its sufficient reserves despite planned drawdowns, and low leverage."
• The S&P Global Ratings report stated: "The stable outlook on Montgomery County reflects the County's very strong local economy and demonstrated resilience to economic cycles, in addition to a very strong management team that we expect will continue to make the necessary adjustments to maintain structural balance. All these factors provide rating stability."
• The Fitch Ratings report stated: "The rating reflects Montgomery County's 'aaa' financial resilience given its 'ample' budgetary flexibility. The ratings also reflect the County's low long-term liabilities assessed by Fitch as strong and strongest demographic and economic level metrics when compared to Fitch's local government rating portfolio."

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.

"Montgomery County's hard-earned 'Triple-A' bond rating reflects our shared commitment to sound fiscal policies and our careful stewardship of taxpayer dollars," said Council President Andrew Friedson. "With prudence and collaboration, we have navigated through unprecedented challenges to fund schools, public safety and affordable housing at record levels, while investing in economic growth so we can maintain Montgomery County as a thriving community for residents and businesses."

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

"Earning a 'Triple-A' bond rating from all major credit rating agencies: Fitch Ratings, Moody's Ratings and S&P Global Ratings is more than just a badge of honor," said Council Vice President Kate Stewart. "A consistent 'Triple-A' rating puts the County among an elite group of the most fiscally sound in the nation. As chair of the Government Operations and Fiscal Policy Committee, I am committed to careful planning, following our fiscal policies, and wise use of resources to ensure we meet the needs of our residents today and into the future. We must continue to exercise strong fiscal policies and manage our budget responsibility."

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Release ID: 24-422
Media Contact: Barry L. Hudson 240-300-7348
Categories: Budget

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