County Executive John R. Leopold Announces Positive Bond Rating Actions
Annapolis, MD. (April 4, 2008) - Anne Arundel County Executive John R. Leopold today announced that Anne Arundel County has retained a AAA bond rating, the highest rating issued, from Standard & Poors and has received an improved rating outlook from Moody’s Investors Service and Fitch Ratings.
"The revision of the ratings outlook from ‘Stable’ to ‘Positive’ indicates that these agencies recognize this Administration’s reputation for being fiscally conservative," said County Executive John R. Leopold. "The Standard & Poors report stated that the County’s economy is poised for continued growth and Anne Arundel County has a positive economic outlook. Our ratings reflect this County’s vibrant economic base with significant job creation potential associated with BRAC, including mixed use development."
Rating agencies gave the bonds high marks based on the County’s vibrant economic base, centered on major governmental and national military-related employers, above average wealth characteristics, strong financial practices and debt policies, and a moderately low debt burden. Ratings were affirmed on the County’s debt as follows:
The County also announces the sale of $87.2 million in County General Obligation Bonds, of which $55.2 million was for general improvements and $32 million was for water and sewer improvements. UBS Securities LLC provided the winning bid with a true interest cost of 4.231321% and a premium of $2,395,910. Other bidders included Prager, Sealy & Co., LLC, Harris N.A., Davenport & Company LLC, Banc of America Securities LLC, Merrill Lynch & Co., Citigroup Global Markets, Inc. and BB&T Capital Markets.
The County’s previous bond sale of $138.4 million was in March 2007 and the true interest cost was 4.076346%.