Bond Rating Pays Off For County

April 19, 1991

The county sold almost $37.2 million in general obligation bonds Wednesday at an interest rate more than half a point below last year's rate.

The lower rate -- from 6.8 percent to 6.28 percent -- will save the county $175,000 in debt when fiscal year 1992 begins July 1.

The bonds -- backed by tax revenue -- are used to pay for major capital projects such as expansion of the circuit courthouse in Annapolis and light rail.

Although the county took in $9 million less this year than budget analysts had predicted, three Wall Street bond rating companies renewed their second-highest ranking for Anne Arundel credit last week.

County bonds were sold at an interest rate slightly lower than Maryland's general obligation bonds, which sold last month at 6.3 percent, the lowest rate in 11 years.

County ExecutiveRobert R. Neall said in a press release: "This interest rate is further evidence that Anne Arundel County is maintaining a stable economydespite the recession."

The interest rate is also evidence of thecontinued weakness of the nation's economy, which puts a premium on conservative investments like municipal bonds.

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