Media Contact
Tonya Walton
Budget and Management Analyst
Phone: 919.245.2153
FOR IMMEDIATE RELEASE
ORANGE COUNTY EARNS STABLE BOND RATING OUTLOOK
ORANGE COUNTY, NC (February 26, 2014)—Orange County has been assigned an ‘AAA’ rating by Fitch, Inc. This is the highest possible bond rating the County can obtain.
The Triple-A rating applies to the following Orange County bonds:
- $86.2 million General Obligation (GO) bonds (various series) at 'AAA'
- $14.3 million Certificates of Participation (COPs), series 2006 at 'AA+'
Fitch also affirms the 'AA+' rating on $86 million of Limited Obligation Bonds (LOBs), series 2011 and 2012, issued by the Orange County Public Facilities Company.
The Rating Outlook is Stable.
“This exceptional rating is the result of several very positive steps taken by the Board of County Commissioners, such as establishing sound fiscal policies, limiting unfunded liabilities, acting prudently to reduce debt financing costs—in turn, improving economic conditions and maintaining sufficient reserves to ensure cash flow and the ability to respond to unexpected financial demands,” said Clarence Grier, the County’s Chief Financial Officer.
The GO bonds are secured by the full faith, credit and unlimited taxing power of the county. The COPs and LOBs are secured by installment payments by the County, equal to debt service and payable from any legally available funds of the county, subject to annual appropriation. The COPs and LOBs are additionally secured by respective deeds of trust on certain essential governmental properties, including several school buildings, a County justice facility, and administration building.
The following is a list of key rating drivers (refer to attachment for full description):
- Stable Operating Performance
- Healthy Balance Sheet Position
- Low Debt
- Favorable Economic Position
- Appropriation Risk And Essentiality
- Credit Profile
- Rating Sensitivities
- Operations Remain Structurally Balanced
- Strong Balance Sheet Position
- Affordable Debt Position
- UNC Anchors Stable Area Economy
In addition to the sources of information identified in Fitch’s Tax-Supported Rating Criteria, this action was also influenced by information obtained from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, and IHS Global Insight.
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Regards,
Carla Banks
Director of Public Affairs
Orange County Government
200 S. Cameron Street
Hillsborough, NC 27278
Office: 919.245.2302
Mobile: 919.475.6650
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