DATE: March 6, 2012
CONTACT: Sue Baldwin
Acting Director, Finance and Administrative Services
Broward County has received ratings of AAA, Aaa, and AA+ from Fitch, Moody’s, and Standard & Poor’s, respectively, for the upcoming issuance of its General Obligation Refunding Bonds, Series 2012 (Parks and Land Preservation project). The AAA from Fitch and Aaa from Moody’s represent the highest possible rating assigned to bonds issued by a municipality, and are an indication to investors of an extremely high degree of creditworthiness and low risk of default. The impact to Broward County taxpayers is a lower cost of borrowing money – which in today’s market for this bond issuance equates to approximately $11 million in savings over the life of the refunding bonds.
Examples of key credit strengths cited by the rating agencies include the County’s strong finances and reserves despite economic pressures, strong management and budgetary practices, modest debt levels, and a diverse local economy. Tourism sales and tourist development taxes, an important component of the Broward County local economy, are returning to pre-recessionary collection levels.
“These ratings are a testament to the County’s prudent financial management during tough economic times," said Bertha Henry, Broward County Administrator.
The new bond issue will refund for interest cost savings all or a portion of the County’s outstanding General Obligation Bonds, Series 2004 and 2005, originally issued for the Parks and Land Preservation Project, resulting in the debt service savings.