Cumberland County Mayor Brock Hill recently announced that earlier this month the county received an upgrade of its bond credit rating from Moody’s Investors Services in New York.
Moody’s upgraded the county’s bond rating from "A2" to "Aa3."
In Moody’s last rating update during 2009, Moody's cited, among other things, the county’s solid financial position due to conservative budgeting of revenues and expenses, satisfactory General Fund reserves, sizable Debt Service Fund reserves, stable tax base and manageable debt burden as all positive factors.
The new “Aa3” also incorporates default risk into Moody’s assessment of Cumberland County.
Mayor Hill said, "The upgrade of our bond rating is a significant milestone for Cumberland County, especially during a period of tough economic times. Moody's continues to believe that the county’s financial position will remain stable and they were especially impressed with our significant reserves in the county’s Debt Service Fund."
Mayor Hill said based on the 2009 report, "It was less than 10 years ago when our ratings were in the 'Baa' category, then we moved up into the 'A' category and now we have achieved our highest ratings ever with this upgraded rating."
Joe Ayres, managing director of Cumberland Securities/Morgan Keegan, who serves as the county’s investment banker, said, "The upgrade of Cumberland County’s bond rating to 'Aa3' puts the county in a new league as it relates to investors both state-wide and throughout the country. Being an 'Aa' category credit expands the number and type of investors willing to invest in the county’s bonds and ultimately results in lower interest rates and therefore significant savings for the taxpayers of the county."
Hill said, "I would like to thank the county commission and Finance Director Nathan Brock who have assisted us in overseeing and managing county government. Everyone's efforts have continued to make Cumberland County a better place to live."