2010 News

April 26, 2010

Moody’s Investor Service Awards Bucks County Its First-Ever Aaa Bond Rating

The Board of Bucks County Commissioners, in conjunction with Chief Operating Officer Brian Hessenthaler, announced today that Moody’s Investor Service has reevaluated the county’s credit rating, awarding Bucks County its first-ever Aaa rating, the highest issued by Moody’s. The announcement comes as the county prepares for a bond issuance that will finance the new Bucks County Justice Center.

“This is a long-awaited milestone for the county, its administration, and its employees,” Commissioner Chairman Charles H. Martin praised. “This Aaa rating reaffirms our commitment and philosophy to build our general fund balance, adapt to changes in funding streams, and to tighten budgets while maintaining our high level of services. In addition, for each of the last four years we have held the line on property taxes in Bucks County.”

“We had hoped to achieve this Aaa rating when we went out for our last bond in 2008,” Hessenthaler stated. “As such, this represents the culmination of a five-year journey. We wanted to get our financial house in order. I believe that a lot of the credit for this rating also must go to former county Chief Operating Officer David Sanko. I’d like to thank the commissioners and members of the Finance department, as well, including Acting Director of Finance and Administration David Boscola.”

During April, 2008, in his role as finance director, Mr. Hessenthaler attributed a Standard and Poor’s rating upgrade to the county’s efforts to restructure debt, cost-cutting efficiencies that led to improved budgetary controls, a stable tax base, and a solid general fund balance. Those key elements have remained in place over the last two years, leading to today’s announcement.

According to Moody’s the Aaa ratings “are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as ‘gilt edged.’ Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.”

Back in January, 2007, Moody’s upgraded the Bucks County credit rating to Aa1, which was at the time its highest level in 20 years. Shortly thereafter, Mr. Hessenthaler predicted, “The job won’t be done until we hit Aaa, Moody’s highest rating – the county is one step away.”

Commissioner Jim Cawley added, “This is a significant accomplishment in Bucks County annals, one that is a tribute to years of sound fiscal policy and planning. It will lead to substantial cost savings to the taxpayers of Bucks County. This achievement has long been a goal of our administration. It has been a team effort and I am pleased that we got it done.”

Given current economic conditions, Hessenthaler estimates this new rating will save the county approximately $2 million on Justice Center borrowing.