Standard & Poor 's upgrades Montgomery County credit in light of positive economic outlook
FONDA - County Executive Matthew L. Ossenfort announced, on Wednesday, that Montgomery County's credit rating has been raised to an A+, according to Standard & Poor's
(S&P), a worldwide leader in providing credit ratings.
"This is terrific news for Montgomery County and certainly shows that we are headed in the right direction," Ossenfort said. "The rating change by Standard & Poor's shows that the County is in a good place financially and they are encouraged in the direction we are heading. I'd also like to commend County Treasurer Shawn Bowerman for the outstanding work he's done in guiding us down the right fiscal path."
The raising of the credit rating on the County's general obligation bonds is based on its local criteria released last week. Standard & Poor's views the County's budgetary flexibility as very strong. Standard & Poor's states that Montgomery County's overall net debt profile is very strong, with fiscal 2013 debt service of 5.5 percent of total government funds expenditures.
The increased rating is also a direct result of the dissolution of Montgomery Otsego Schoharie Solid Waste Authority (MOSA). In years passed, Montgomery County would have to cover any shortfall in gross annual tonnage (GAT). If there was a tonnage shortfall, the County would owe money to MOSA, which in some years cost upwards of $1 million. The County's solid waste solution of a public-private partnership and an inter-municipal agreement has resulted in a more stable economic outlook.
Credit ratings are opinions about the ability and willingness of an issuer, such as a local government, to meet its financial obligations in accordance with the terms of those obligations. The improved rating will help when the county borrows money in the future.
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