Monroe County gets AA credit rating from Standard and Poor's

Monroe County recently announced the results of its credit rating from Standard and Poor’s Global Rating.

The rating was part of a $3.255 million bond sale for the Monroe Consolidated Drainage District within Monroe Township. The bonds sold with a duration of 20 years and a net interest cost of 4.6%. S & P Global assigned its rating of AA to the bonds. At the same time, S & P Global affirmed its AA rating on the county’s existing limited–tax General Obligation debt.

General Obligation Limited Tax bonds carry a full faith and credit pledge of the county and are a first budget obligation each year. The County is actively involved as an the issuer of these bond sales on behalf of local townships involving various water supply system improvements, drainage projects or other municipal debt. The investment grade credit rating of the County allows for debt to be issued and the interest rate charged on that debt lower due to the good rating. This results in lower overall costs to citizens or customers or water/sewer systems who pay back the debt through property assessments or rates for water/sewer usage.

County Board of Commissioners Chairman Mark Brant noted the tangible value in the stable credit rating.

“It affirms to the investment community and most importantly to our citizens that sound financial management practices and governance of the county is at work and results in good outcomes for our communities," Brant said.

According to S & P Global Ratings, the rating reflects its view of Monroe County's:

• Stable economy, with ongoing economic development and a variety of employment opportunities, but some weakness with automotive industry concentration.

• Good financial management, with policies supporting its strong budgetary performance.

• Adequate debt and contingent liability profile, with elevated net direct debt and pension and other post-employment benefit (OPEB) liabilities against total governmental revenues.

County Administrator and Chief Financial Officer Michael Bosanac said he was pleased to see another solid financial rating on the county’s credit.

“I am pleased for the county’s teamwork in delivering this stable rating," he said. "It confirms the long-term trend of positive outcomes in terms of financial management of the county. Because other local units of government in Monroe County use the county’s credit rating and borrowing capacity to finance their projects, they and most importantly their citizens will continue to get some of the best financing rates, and the lower borrowing costs directly related to the county’s good credit rating. But our team will continue to make our case on future ratings that a stronger rating is warranted for many reasons, including the county’s financial position and the economic activity across the county."

This article originally appeared on The Monroe News: Monroe County gets AA credit rating