Clermont receives favorable bond rating

May 23rd, 2010    Author: Staff Report    Filed Under: News

Moody’s Investors Service has affirmed Clermont County’s favorable Aa1 bond rating, the second highest bond rating possible. 

Moody’s also assigned an Aa2 rating to the Clermont County Transportation Improvement District’s 2010 bond issue, an increase from the Aa3 rating assigned to the 2007 bond issue.

“These ratings translate into a significant reduction in the cost of borrowing money; it will save taxpayers money due to reduced interest costs,” said Clermont Commissioner Scott Croswell.

"The Moody's Investors Service ratings are significant, in light of current economic conditions that impact not only the county but the entire country," said Clermont County Administrator Dave Spinney. "The report recognizes Clermont's stable tax base and financial management that can be directly attributed to the fiscally conservative policies of the Board of Clermont County Commissioners."

In affirming the favorable bond rating, the report notes continued expansion at UC Clermont College, employment growth at Tata Consultancy Services in Miami Township, and a county socioeconomic profile that is above state norms. The report also focused on strong population growth in the county, increasing 18.5 percent from 1990 to 2000 and 9.8 percent between 2000 and 2008.

The Moody's report finds the county's low overall debt burden (1.5 percent) should remain favorable, given rapid principal amortization of 97 percent in 10 years and the lack of immediate borrowing plans.

The Transportation Improvement District's favorable bond rating is based on the strength of the pledged revenue streams from highly rated contributing entities, including the county, Miami Township, and Union Township.
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