Talbot County, Maryland

08/19/2024

Category: Finance

Talbot County is pleased to announce that Fitch Ratings has reaffirmed the county's ratings at "AAA" for both its Issuer Default Rating (IDR) and General Obligation (GO) bonds.

In their press release, Fitch Ratings notes the “AAA” rating “reflects Talbot’s resilience, underscored by ample budgetary flexibility, and Fitch’s expectation that the county will sustain reserves at or above 7.5%. The county’s long-term liability profile is assessed as ‘strongest’.”

Council President Chuck Callahan expressed his enthusiasm, stating, "This is awesome news! We are grateful for Fitch’s rating and this achievement which reflects the hard work and dedication of our Council members, County team and financial consultants to maintaining a thriving and well-managed community for all our residents."

Martha Sparks, Talbot County Director of Finance, further explains that the rating reflects that the County is in a stable financial position and that it can repay its debt.

“Fitch’s affirmation of Talbot County’s AAA bond rating under its new 'U.S. Public Finance Local Government Rating Criteria' illustrates the impact of the County’s well-founded fiscal policy of conservative spending and reserve building.  This enables our citizens to have the benefit of some of the lowest income and property tax rates in the state.”

The key factors contributing to this top rating include:

• Strong Financial Management: Talbot County's prudent budgeting and financial policies have resulted in robust financial reserves and flexibility.
• Economic Stability: The county's diverse economy and strong tax base provide a solid foundation for sustained economic health.
• Low Debt Levels: The county maintains low debt levels relative to its revenues, ensuring that it can comfortably meet its financial obligations.

These ratings are not only a mark of excellence but also beneficial for the community. They help the county secure lower interest rates on borrowing, saving taxpayer money on future projects and investments.

Clay Stamp, County Manager stated, “Fitch’s reaffirmation of the County’s AAA rating is a strong endorsement of our Council’s policy direction, the leadership of our finance team under Martha Sparks and the outstanding financial consultants.”

The commentary issued by Fitch Ratings can be found on their website at Fitch Affirms Talbot County, MD's IDR and GO Ratings at 'AAA'; Outlook Stable; Removed from UCO (fitchratings.com).

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