MOODY'S ASSIGNS Aa2 RATING TO FREDERICK COUNTY'S (MD) $188.7 MILLION G.O. BONDS; REVISES OUTLOOK TO STABLE FROM POSITIVE

Posted on: December 23, 2009, 3:40 pm

NEW YORK, Dec 23, 2009 -- Moody's Investors Service has assigned Aa2 ratings to Frederick County's (MD) $59.7 million Consolidated Public Improvement Tax-Exempt Bonds, Series 2010A, $90.1 million Consolidated Public Improvement (Taxable Build America Bonds - Direct Payment to Issuer) Series 2010B and $38.9 million Consolidated Public Improvement Refunding Bonds, Series 2010C. The rating outlook has been revised to stable from positive. Concurrently, Moody's has affirmed the Aa2 rating assigned to $450 million (post-refunding) of previously issued parity debt secured by the county's unlimited ad valorem tax pledge. The Aa2 rating reflects the robust expansion of the county's economy during recent years - with a tax base that has nearly doubled since 2000 - and the steady emergence of a diverse and vibrant employment base. The rating also factors our expectation that the county's financial position will stabilize beginning in fiscal 2011 after several years of declines, given management's adherence to comprehensive financial policies and commitment to maintaining structurally balanced operations. Additionally, the rating incorporates the county's manageable debt position aided by support of utility and solid waste debt from enterprise operations. Proceeds of the Series 2010A and 2010B bonds will finance various capital projects in accordance with the county's capital improvement plan. The Series 2010C bonds will refund $40.3 million of outstanding Series 2005 bonds for a net present value savings estimated at 1.9% of refunded par, without extension of the current maturity structure...

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