Ocean County’s bond rating has reached the highest grade possible to AAA — which officials said is a testament to the county’s conservative and fiscally responsible approach to its finances.
“This is the happiest day of my public life,” said Freeholder John C. Bartlett Jr., who is liaison to the county’s finance department and the architect of the county’s annual budget. “With the recalculation of our bond rating, we have moved from AA1 to AAA by the bond rating houses. This new rating, the highest possible, is a validation of the fact that the Ocean County Board of Freeholders keeps its financial house in very good order.”
Bond rating houses Moody’s Investors Service and Fitch Ratings have both given Ocean County an AAA bond rating. Bond ratings range from Baa, the lowest, to AAA, the highest possible, according to a press release from the county.
Similar to a credit score for a consumer, the higher the rating, the better.
“A consumer’s credit score is higher if you pay your bills on time, have some money in the bank and keep a low debt ratio,” Bartlett said. “On the county level, the bond rating houses have noted that Ocean County pays its bills on time, has a strong fund balance [surplus account] and a manageable debt position.”
Bartlett noted the county could have approached its finances differently by drawing down its surplus to critically low levels or by not aggressively paying down its debt.
“But it’s due to the steps we have taken that we now have the highest bond rating possible,” the freeholder said. “The county has made steady progress over the years, and this new bond rating proves our actions have been prudent, especially during this unprecedented economic downturn.”
According to the press release, the AAA bond rating comes with benefits that include better interest rates and the potential for a greater market of competitors interested in purchasing the county’s bonds.
“When we sell bonds which are used to fund long-term projects such as the county’s infrastructure, its roads, its parks, we get the best results possible because we are a safe investment,” said Freeholder Director James F. Lacey. “That doesn’t happen haphazardly. We have a solid financial plan in this county, we follow it and this bond rating validates it.”
The rerating was put into place after the bond rating houses implemented a global standard when rating a government’s financial stability, according to the press release.