NORRISTOWN, PA – The Montgomery County Commissioners announced today that Montgomery County has received the highest bond rating—Aaa with a stable outlook—from Moody’s Investors Service for the fifth year in a row.
In its reasoning for why Montgomery County deserves to maintain the highest credit rating possible, Moody’s cited the following points in its credit opinion:
- The Aaa rating reflects Montgomery County’s large dynamic tax base, with continued development underway despite the continued economic impact of the coronavirus pandemic.
- Top employers are very stable and include several pharmaceutical firms as well as state and county government, in addition to a more economically-sensitive retail industry.
- Resident wealth is satisfactory, with Median Family Income (MFI) at 145% 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 satisfactory financial profile.
- The county was materially impacted by Hurricane Ida in 2021 and its finances will reflect some additional costs attributable to the storm.
- Further, the county expects a moderate increase in debt service over the next two years which could potentially impact operating flexibility and result in draws on reserves, though the county intends to operate within its formal fund balance policy.
By securing the highest possible credit rating, Montgomery County can borrow money at the lowest interest rates possible. In addition, reduced debt service allows the County to continue investing in critical infrastructure and improve services offered to Montgomery County residents.
“Earning the highest bond rating from Moody’s Investors Service for the fifth time is truly a testament to our sound fiscal policies and the diligent work of our Finance team," said Dr. Valerie A. Arkoosh, Chair of the Montgomery County Board of Commissioners. “This rating supports our work to invest in long-term capital planning efforts, upgrade our aging infrastructure, and ultimately deliver all the important programs and services our residents need and deserve.”
Montgomery County sought the rating in anticipation of the Series of 2022 bond offering on June 29, 2022. The County is seeking $155.2 million in General Obligation Bonds, Series of 2022, to fund projects in the County’s ongoing five-year capital plan.
“This new bond offering continues our investments in the core functions of government,” said Kenneth E. Lawrence, Jr., Vice Chair of the Montgomery County Board of Commissioners. “By securing the highest possible credit rating, we will continue to move forward the important work of upgrading and improving our roads, bridges, and trail network for the future.”
To see a copy of Moody’s press release, click here.
Media Contact: Kelly Cofrancisco, firstname.lastname@example.org