For Immediate Release
Thursday, July 26, 2012
Atlantic County's Strong Bond Ratings Benefit Taxpayers with Lower Interest Rates
As a result of strong management policies and conservative budget practices, Atlantic County government remains financially stable as reflected in its recent bond ratings by the nation's top bond rating companies.
Bond ratings are given to local governments to rate their overall credit-worthiness, much the same as credit scores do for individuals. Atlantic County has maintained its AA bond rating with Standard & Poor's Financial Services which it first attained in 2008, as well as an Aa2 rating by Moody's Investor Services.
"What is important to note to our taxpayers is that these ratings translate into lower borrowing costs and significant savings on interest payments," stated County Executive Dennis Levinson.
The Aa2 rating reflects the county's large tax base with gaming concentration, adequate financial position, strong financial management and modest debt burden supported by conservative debt management practices, reported Moody's in a statement to Atlantic County.
Moody's cited the county's practice of maintaining a capital fund surplus that allows for possible budgetary adjustments without having to finance short-term expenditures. The county also maintains several trust funds to further optimize financial flexibility.
Levinson said his administration prides itself on its strict adherence to pay-as-you-go practices, refusing to saddle future generations with massive debt. Accordingly Atlantic County’s debt burden is a low 0.29%.
"I am pleased with this affirmation of our fiscal stability and the practices we continue to uphold even in the face of severe economic challenges," he added.
"Atlantic County is in sound financial condition and looks forward to additional economic diversification to further strengthen our economic future," concluded Levinson.