Anne Arundel County Government Gets First Triple-A Bond Rating in History
Annapolis, MD (March 22, 2007) - Anne Arundel County Executive John R. Leopold today announced that the County Government received its First Triple-A Bond Rating in history. The rating group of Standard & Poors raised the County’s bond rating from last year’s Double A-Plus to a Triple-A rating.
"I am elated to receive the outstanding news that for the first time in history, Anne Arundel County will enjoy a triple-A bond rating," said County Executive Leopold. "This development will mean decreased interest costs for County residents and heightened interest in County bonds. It is especially gratifying to hear that "Standard & Poors" has lauded the County Government for its management ability and operational efficiency. The AAA bond rating reflects the County’s strong and diverse economy and respects this Administration’s conservative budget practices and tight expenditure controls."
Ratings were affirmed on the County’s debt as follows:
|Standard & Poors Rating Group||AAA|
|Moody’s Investors Service||Aa1|
Meanwhile, County Executive Leopold announced the sale of $138.4 million in County General Obligation Bonds, of which $95.9 million was for general improvements and $42.5 million was for water and sewer improvements. Citigroup Global Markets, Inc. provided the winning bid with a true interest cost of 4.076346% and a premium of $5,934,128. Other bidders were J. P. Morgan Securities, Inc., Morgan Stanley & Co., Inc., Merrill Lynch & Co. and Lehman Brothers.
Rating agencies gave the bonds high marks based on the County’s vibrant economic base, above average wealth characteristics, strong financial practices and debt policies along with a moderately low debt burden.