Fitch Ratings recently affirmed the AA+ rating on the City’s general obligation (GO) bonds. The rating outlook is stable.
Fitch Rates City’s GO Bonds AA+; Outlook Stable
Frederick, MD - January 13, 2015: Fitch Ratings recently affirmed the AA+ rating on the City’s general obligation (GO) bonds. The rating outlook is stable.
“A promising future is only possible through fiscal responsibility. This favorable rating is a result of good decisions and smart fiscal policies that have been implemented. A favorable bond rating allows this and future administrations the ability to borrow at favorable rates,” said Mayor Randy McClement.
Key rating drivers were strong financial management, a stable economic base, above-average economic indicators, and moderate debt levels.
Fitch viewed as positive the City's recent efforts to curb long-term pension and OPEB liabilities through plan changes. Also noted was the City’s proximity to Fort Detrick. Located within the City’s borders, it is the site of the U.S. Army Medical Research Institute of Infectious Diseases and the National Cancer Institute, the region’s key governmental, technological, and biomedical economic asset. Fitch anticipates continued sound reserves in line with the City’s unrestricted fund balance policy equal to 12% of revenues.
The City's general fund debt plans include $7.2 million for road construction projects during the current year. The City's multi-year plan includes $17.7 million in airport projects, which are expected to be funded with debt serviced by the general fund. The city has applied for approximately $27 million in low-interest loans from the state to fund water and sewer infrastructure projects,
View the complete report from Fitch online: http://www.businesswire.com/news/home/20150112006389/en/Fitch-Affirms-Frederick-MDs-GOs-AA-Outlook#.VLVM5ntcghQ
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