2007 News

January 17, 2007

Bucks County Commissioners Earn Highest Moody's Bond Rating in 20 Years

The Bucks County Commissioners announced today that Moody’s Investor Service has upgraded the county’s credit rating, assigning Bucks County with an Aa1 rating, its highest rating in 20 years. According to Finance Director Brian Hessenthaler, as the county prepares to issue $44 million in bonds, its credit underwent review by the credit-rating agency.

Commissioners’ Chairman Charles H. Martin notes, “I can’t recall the county ever being rated this high,” adding that not only is the county’s financial picture a factor in earning a high rating, but Moody’s also reviews the management team, its philosophy, and the overall stability of the county. “This rating affirms our successful efforts to build the fund balance, flexibility and adaptability in reacting to changes in funding streams, and represents a real team effort in terms of tightening our belts and maximizing revenue sources.”

Back in 2004, the commissioners charged Hessenthaler to put a plan in place to increase the county’s ratings. Today, we see the plan come to fruition. Although this represents an accomplishment for the county, Hessenthaler says, “The job won’t be done until we hit AAA,” Moody’s highest rating – the county is one step away.

“It’s that positive attitude and tenacity on the part of our team that will allow us to reach that goal,” noted Commissioner James Cawley. “This milestone is something for which we can all be proud.” Cawley points out that because of the increased rating, the county will realize a savings of approximately $200,000 over the life of the bond.

“When we charged the finance director with reaching the goal of an increased rating for Bucks County, I don’t think we expected it to be met this quickly. It’s a job well-done, ahead of schedule, with resulting savings for our taxpayers,” Commissioner Sandra Miller stated.

In a statement, Moody’s attributed the increased rating to “…the county’s sizeable, diverse and rapidly growing tax base; socioeconomic indicators that comfortably exceed state and national medians; augmented healthy financial position bolstered by additional reserves and a new revenue source (gaming); and low debt burden that is expected to remain manageable despite additional debt plans.”

Hessenthaler also points out that Standard and Poor’s recently brought the county’s credit rating up a notch from AA- to AA. In their report, S&P attributes the bump to a turn-around in the county’s finances through debt restructuring and improved budgetary controls, and a particularly healthy general fund balance.