County’s Strong Economy Leads to Favorable Bids
Rating Agencies Note Strong Financial Planning and Operations and Low UnemploymentAnnapolis (March 22, 2006) - Anne Arundel County Executive Janet S. Owens announced the County sold $206,175,000 in General Obligation Bonds, of which $66,000,000 was for general improvements throughout the County, $19,000,000 was for water and sewer improvements and $121,175,000 was to advance refund prior bond issues. The advance refunding resulted in savings of $4.6 million to the County. UBS Securities LLC provided the winning bid with a true interest cost of 4.140964% and a premium of $8,206,299. Other bidders were Lehman Brothers, Citigroup Global Markets, Inc. and Merrill Lynch & Co.
Ratings were affirmed on the County's debt as follows:
|Standard & Poors Rating Group||AA+|
|Moody's Investors Service||Aa1|
Rating agencies gave the bonds high marks based on the County's healthy economic base, steady population growth, an unemployment rate of 2.9%, modest tax-supported debt levels and strong financial planning and operations.
"I’m disappointed with the course the agencies took by not issuing the County a Triple-A rating, since they admit we have a Triple-A economy. The components of our ratings are excellent, so it’s clear that the property tax revenue cap remains our biggest impediment," said County Executive Owens.
The County previously sold bonds on February 24, 2005 with a true interest cost of 3.884569%