In spite of the challenging financial times, Hamilton County’s superior bond credit rating will continue.
Hamilton County received the coveted AAA bond rating from S&P Global credit-rating service, which allows the county to maintain low interest rates when repaying bonds.
Mills
“The pandemic has created financial challenges for everyone, including Hamilton County Government,” said Hamilton County Auditor Robin Mills. “The AAA bond rating means the citizens of Hamilton County will be saving money due to the careful, fiscal stewardship of the county’s leadership.”
Hamilton County’s bond rating offers insight into the county’s financial strength. Bonds get rated for much the same reason consumer agencies rate products, to gauge and communicate quality. If the bond rating is good, the county is strong enough to pay its obligations, which include expenses, payment of debts, and dividends.
“The AAA rating is evidence of Hamilton County’s strong fiscal foundation and its ability to face and overcome adversity,” Mills said. “Hamilton County is the only local income tax county in the state to receive the highest possible rating, which is a testament to the thoughtful management versus crisis management approach we have taken toward county government.”
In assigning a rating for General Obligation Bonds, the rating agency assess factors such as:
- Economy
- Debt Structure
- Financial Condition
- Demographic Factors
- Management practices of the governing body and administration
In its rating report S&P Global noted: “We consider the county’s economic fundamentals to be very strong. The county’s population has increased in recent years as have the employment opportunities. The county’s tax base is primarily residential and commercial – we view income taxes as a revenue stream that could be more susceptible to economic swings and the long-term implications of the COVID-19 pandemic. But we also recognize that economic growth in the county has persisted and, as a result, the county anticipates continued revenue growth in future years as a result, which we view likely.”
A tangible example of savings resulting from the county’s bond rating is the recent reissuing of the county’s bonds at a lower interest rate, which will yield roughly a $4.5 million savings.
“I am thrilled that Hamilton County has been able to maintain this bond rating in such trying times,” Mills said. “The county is always working hard to meet the needs of the residents, but even more so when faced with challenges such as those posed by the current pandemic.”