COUNTY RETAINS FAVORABLE BOND RATING AND CONDUCTS SUCCESSFUL BOND SALE

Wicomico County Executive Richard M. Pollitt, Jr. announced today that, despite the current challenging economic climate, Wicomico County has retained its favorable bond rating with the three key Wall Street ratings agency and, as a result of this, conducted a successful bond sale on December 1, 2009. Mr. Pollitt issued the following statement on the positive financial news.

“I am pleased to announce that my administration has received a large vote of confidence from Wall Street financial experts. Despite the extremely difficult economic times, Wicomico County has retained its favorable ratings with all three rating agencies – Moody’s Investors Service, Fitch Ratings and Standard & Poor’s. Bond investors also confirmed this confidence by buying Wicomico County bonds at highly favorable rates on December 1, 2009.

“The county has sold ‘Build America Bonds’ in the amount of $16,465,000 for Bennett High School construction, architectural and engineering work related to Bennett Middle School, and for the Allied Health Building at Wor-Wic Community College. The interest on Build America Bonds is subsidized by the federal government at 35%, making the subsidized interest rate on these bonds to be 3.54%. The County also refinanced its 2001outstanding bond issue totaling $ 3,790,000 at an interest rate of 2.49 %. This refinancing is expected to save the County about $236,000 in interest costs over twelve years.

“In retaining the County's A2 rating, Moody’s cited a strong record of conservative fiscal management and a willingness to make cuts to balance the budget. Moody’s said that the county has a ‘manageable debt burden.’ Despite recent healthy financial operations, they believe the recessionary economy will place unique budgetary pressure on an already constrained budget.

“In its A+/Stable rating release, Fitch Ratings noted a moderate debt burden, solid reserve levels, and a stable employment base. They also cited the revenue cap’s impact on property tax revenue, and deterioration in the County's financial flexibility due to the broad recessionary environment.

“In its rationale for Wicomico’s AA-/Stable rating; Standard & Poor’s cited the County’s diversified economy rooted in agriculture, a healthy and stable property tax base, sound financial performance, conservative management practices, and a low debt burden. They also noted the Executive’s proactive stance to address mid-year cuts in state funding and declining income tax revenues. The County's financial management practices are rated ‘good’ under S&P's methodology.”