Tuesday, June 20, 2023

Atlantic County Retains Top Tier Credit Ratings for Taxpayer Savings

On the heels of the country’s highest inflation in 40 years and 10 interest rate hikes since 2022, Atlantic County continues to do its part to reduce costs for its taxpayers.

The reaffirmation of Atlantic County’s top tier bond ratings by both Moody’s Investors and Standard & Poor’s Global Ratings will allow the county to obtain lower interest rates for capital improvements and county purchases. Moody’s Investors has assigned Atlantic County an Aa2 stable rating while Standard & Poor’s has assigned it an AA stable rating, the same respective ratings Atlantic County has enjoyed for the last 15 years.

“Atlantic County has once again earned an A on its financial report card,” stated County Executive Dennis Levinson. “The financial team we have put in place does an outstanding job in keeping the best interests of our taxpayers a priority.”

Levinson explained why maintaining these top tier ratings is important to county residents.

“The higher the bond rating, the lower the interest rate, and the larger the savings are for our taxpayers,” he said. “As the public struggles with higher costs for housing, food and recreation, they can be assured that Atlantic County is working to keep more money in their pockets.”

“Taxpayers may recall this year’s county budget includes an overall 2.5-cent tax rate decrease,” added Levinson.

Both S&P and Moody’s noted the county’s strong management team, conservative financial practices and policies, and aggressive economic development and diversification strategies.

“The stable outlook reflects our expectations that given management’s strong track record and detailed planning, the county’s finances will continue the historic trend of remarkable stability,” reported Moody’s.

According to S&P, “The county maintains sophisticated and well-embedded financial management policies and long-term planning which form the backbone of the county’s credit quality.”

Long-term planning includes a seven-year financial plan with annual updates and quarterly budget-to-actual monitoring and reporting in addition to a six-year capital improvement plan with identified projects and funding resources.

The county’s strong liquidity, low debt and strong reserves were also cited by both agencies.

 

County News