Bond Rating

Wall Street analysts reaffirmed yesterday Maryland's coveted AAA bond rating, even as Comptroller Peter Franchot released tax revenue figures showing sagging finances. The three major bond-rating agencies - Fitch Ratings, Moody's Investors Service and Standard & Poor's - gave Maryland the AAA rating in advance of the state's $415 million bond sale planned for next week, according to state Treasurer Nancy K. Kopp. The top rating, a sign of confidence in the state's financial stewardship, typically means the state can obtain lower interest rates, saving taxpayers money.

The following is the 2012 State of the County Address delivered by Harford County Executive David Craig at the Feb. 21 county council legislative session: Harrisburg, PA: Requesting Bankruptcy. Jefferson County, AL: Bankrupt. The State of Maryland: A "negative outlook" on its bond rating; A $1.2 billion budget deficit. The United States of America: A drop from a Triple A rating to Double A; An unbalanced budget; A new trillion dollar deficit.

The governor, comptroller and treasurer sought yesterday to calm fears caused by reports that Maryland's top-notch credit rating may be in trouble.They issued a letter saying they expected the state to keep its high bond rating, which allows the government to borrow money at low interest rates and thereby save taxpayer dollars.But the trio did not deny a legislative memo that said the Standard & Poor's Corp., a bond-rating agency, has considered placing Maryland on a "credit watch" because of its budget problems.

Upon announcing earlier this week that Harford County government had retained its AAA bond rating, County Executive David R. Craig made a wry comment to the effect that the federal government could take a lesson from Harford County when it comes to fiscal policies. Most years, it's pretty unusual for government bond ratings to be the stuff to lead the broadcast or be on the front pages of popular news outlets. Such reporting generally is confined to the business pages and the financial news programs.

With an improved budget forecast in hand, Anne Arundel County Executive Janet S. Owens traveled to New York City yesterday to two Wall Street bond-rating firms in hopes of landing the best bond rating in the market. The county's bond rating - and its ability to raise money to fund road, school and sewer improvements - depend upon such annual visits. Owens and other county officials were scheduled to meet with financiers at Standard and Poor's and Moody's Investors Service, with an agenda that included the county's improved 2002 budget outlook.

Howard County is refinancing one-quarter of its debt -- a move that officials say will save $3.43 million by locking in lower interest rates for the next several years.The refinancing of $132.7 million worth of bonds takes advantage of current low interest rates in the bond market and Howard's new triple-A bond rating -- the highest possible -- that also qualifies the county for lower rates.Dale Neubert, the county finance director, equates the move with refinancing a home mortgage. "We've just refinanced our house," she said.

Howard County's coveted AAA bond credit rating was renewed for the 13th consecutive year by the three New York bond rating houses, county officials announced Tuesday. The rating means the county can borrow money at the lowest available interest rates because investing in county bonds is considered to have the lowest level of risk for purchasers. Fewer than 30 jurisdictions nationwide out of about 3,000 receive the rating each year. County executive Ken Ulman, a Democrat who is planning to run for re-election this year, said the rating shows that he runs a "disciplined government that is conservative when it comes to spending and pro-active when it comes to cutting costs."

Harford County's AAA bond rating was reaffirmed by rating agencies Moody's Investors Service and Fitch Ratings, Harford County Executive David R. Craig announced Tuesday. The two agencies upgraded the county in 2010, and the confirmation of the AAA ratings are the result of a review of the county's fiscal management practices and economic outlook, as well as meetings with the county executive and members of his administration. Standard & Poor's also reaffirmed its AA+ rating for the county.

Howard County's coveted AAA bond credit rating was renewed for the 13th consecutive year by the three New York bond rating houses, county officials announced last week. The rating means the county can borrow money at the lowest available interest rates because investing in county bonds is considered to have the lowest risk for purchasers. Fewer than 30 jurisdictions nationwide out of about 3,000 receive the rating each year. County Executive Ken Ulman, a Democrat who is planning to run for re-election this year, said the rating shows that he runs a "disciplined government that is conservative when it comes to spending and pro-active when it comes to cutting costs."

I was happy to read in the Feb. 23 Sun, that Maryland is one of only eight states with a coveted AAA credit ranking. ("Maryland maintains highest rating ahead of bond sale. ") Then, because I am retired and seriously ill, I went back to working on my complicated graph of which medicines I can afford to take and which I must discontinue come July 1. As part of what Governor O'Malley touts as his strong stand on "fiscal responsibility," he supports Senate Bill 87 and House Bill 72 (currently under consideration by the legislature)

Harford County's AAA bond rating was reaffirmed by rating agencies Moody's Investors Service and Fitch Ratings, Harford County Executive David R. Craig announced Tuesday. The two agencies upgraded the county in 2010, and the confirmation of the AAA ratings are the result of a review of the county's fiscal management practices and economic outlook, as well as meetings with the county executive and members of his administration. Standard & Poor's also reaffirmed its AA+ rating for the county.

The General Assembly's chief budget analyst warned lawmakers Thursday that too much borrowing to achieve Gov. Martin O'Malley's goal of creating jobs through public works spending could put the state's sterling bond rating in jeopardy. Warren G. Deschenaux, chief of the nonpartisan Office of Policy Analysis, told the Joint Committee on Spending Affordability it would be a mistake to raise the state's current limit on the amount of debt it can take on. Such a move, he said, could make it difficult to maintain Maryland's prized AAA rating.

Baltimore County has again earned a AAA bond rating from the three major rating agencies, county officials said Wednesday. Fitch, Moody's and Standard and Poor's have all given the county the highest possible rating, pointing to conservative fiscal management and a diverse economy. Less than 1 percent of counties nationwide have a AAA rating, county officials said. County Executive Kevin Kamenetz said he is pleased with the ratings, but added that the county must continue to find savings because revenues are not keeping pace with expenditures.

The Bureau of Public Debt released the new rates for savings bonds purchased from now through the end of April. The Series I bond rate for the next six months will be 3.06 percent, down from 4.60 percent for the previous six-month period. The inflation-protection bond is made up of two rates: a fixed rate for the life of the 30-year bond and an inflation rate that is adjusted every six months. The fixed rate remains a dismal zero percent, while the annualized inflation rate is set at 3.06 percent.

Howard County is preparing for the county's $200 million bond sale Tuesday, buoyed by a AAA credit rating the county just earned from all three major bond rating agencies. This marks the 14th consecutive year that Howard County has earned the stellar rating that typically translates to lower interest payments on debt. County Executive Ken Ulman, a two-term Democrat, had earlier expressed concern that Howard might be affected after Standard & Poor's downgraded U.S debt. "This is not just about borrowing at a lower rate," Ulman said last week.

In approximately six weeks the Maryland General Assembly will meet in a special session to perform its constitutional duty to reapportion the state for congressional districts. The reapportionment is necessary so congressional districts reflect the new population data from the 2010 census. During the special session it is important state legislators not waiver from their task of approving a reapportionment plan. For that reason, they should not consider any new taxes or major policy initiatives.

The pressures of the election might be over, but Howard County's elected officials are looking at continuing fiscal pressures in what could be their toughest budget season yet as the county faces nearly flat revenue after more than two years of cuts. County budget director Raymond S. Wacks told the County Council on Monday morning that revenue is still on track to avoid any shortfall in the budget year ending June 30, and the county preserved its coveted AAA bond rating for a $165 million bond sale slated for this week.

Earlier this week, Moody's credit rating agency announced it is reviewing the credit of Maryland and four other AAA rated states in light of the debate in Washington about the possible default of U.S. government debt - even though Maryland pays its bills on time. It may seem myopic to focus on what U.S. government default would mean for Maryland, but our state's members of Congress should think about it as they consider the willingness of some Republicans in Congress to default rather than vote to raise the nation's debt limit.