Talbot County, Maryland

09/15/2022

Category: Finance County Council

Talbot County received high bond ratings from both Fitch Ratings and Moody’s Investors Services in preparation for selling bonds on September 29, 2022 for the planning, design, acquisition, renovation, construction and furnishing of the new Public Safety Building and Health Department facility. Moody’s assigned an Aa1 general obligation limited tax rating which is an upgrade from the previous Aa2 rating. In their credit opinion Research: Rating Action: Moody's upgrades Talbot County, MD's issuer and GOLT ratings to Aa1 from Aa2; assigns Aa1 to 2022 bonds - Moody's (moodys.com) Moody’s noted “the upgrade reflects the county's continued strong financial performance through conservative budgeting that has led to substantial reserves.” Other considerations included the county’s low long-term liabilities with a manageable long-term capital plan and a very strong reserve position.

Fitch Ratings has maintained a rating of AAA to Talbot County. In their press release Fitch Rates Talbot County, MD's $24.9 Million GOs 'AAA'; Outlook Stable (fitchratings.com) Fitch noted the AAA rating “reflects the county's very low long-term liability burden and associated fixed carrying costs that are a minimal percent of spending, as well as modest future borrowing plans. The rating also incorporates the county’s healthy reserves that provide the highest level of gap-closing capacity to address an economic downturn.”

Chuck Callahan, President, Talbot County Council states, “The high bond ratings from both Moody’s Investor Services and Fitch Ratings illustrate the financial strength of the County which is attributed to conservative budgeting practices and a strong reserve that has been maintained by both the current and previous Councils over the years. The Council is enormously proud that Moody’s upgraded the County’s bond rating and we thank staff for their hard work in preparation for the bond sale.”

Martha Sparks, Talbot County Director of Finance, further explains that the ratings reflect that the County is in a stable financial position and that it can repay its debt. “Moody’s recent upgrade of Talbot County’s bond rating illustrates the impact of the County’s longstanding fiscal policy of conservative spending. This enables our citizens to have the benefit of some of the lowest income and property tax rates in the state.

“This is welcomed news that highlights the County’s fiscal prudence through the use of best practices and by maintaining strong reserves which establishes a strategically balanced position, especially important during these times,” notes Clay Stamp, Talbot County Manager.