Despite Sequester, Howard County's AAA Bond Rating Affirmed

Despite the possible effects of mandated cuts on the local federal workforce, Howard County announced Friday that all three major ratings agencies gave the county a AAA credit rating.

"Even though our solid position is confirmed for the 16th year in a row, Howard County can never rest easy in its approach to fiscal management," said County Executive Ken Ulman, in a statement. "In times of sequestration and concerns over federal furloughs, it must not be taken for granted that we will fare well in this market."

Earlier this year, Moody's threatened to lower counties' bond ratings that were heavily dependent on federal jobs in their local economy, including Howard County.

But Friday's announcement means Moody's wasn't prepared to make that move.

According to a county statement, Moody's explained their AAA rating reflects "the county's sizeable economic base and wealthy demographic profile" as well as Howard's sound fiscal policies and "proactive management."

The other two agencies to confirm the AAA rating were S&P and Fitch.

Fitch cited the county's low levels of unemployment, a quality labor force and that the county's past history handling the recession proved it can handle adversity, according to a county statement.

Having an excellent bond rating helps the county secure the lowest intrest rate on bonds and the rating measures the strength of the local economy.

"I am gratified that after a thorough review, independent analysts acknowledge that Howard County is in the strongest possible financial position, thanks to our leadership, our resources and our people," said Howard County Council Chairperson Jen Terrasa, in a statement.

Related Articles:

• Fort Meade Readies for Looming Sequester

• Report: Federal Budget Problems Could Impact County's AAA Bond Rating

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