Aberdeen Bonds Rank as a Safe Investment

Aberdeen's baseball team might be Single-A, but the city's bond rating is looking at a higher ranking.

Mayor Michael Bennett told Patch Tuesday night that the city has received its first report from the three agencies that provide bond ratings, and Standard & Poor's has given Aberdeen's bonds a Double-A rating. It's the company second highest rating.

"It's like a home run for a city our size," Bennett said. "That just says that things are fiscally well managed and things are going along."

On Monday Aberdeen City Council authorized the "issuance, sale and delivery" of $9.5 million in bonds.

According to the Standard & Poor's website, an AA rating means Aberdeen has a "very strong capacity to meet financial commitments."

The city is awaiting its results from Moody's and Fitch, the other two agencies rate the ability of governments and companies to repay the bonds they issue to investors to finance capital improvements to roads and infrastructure.

"I'm very optimistic we'll make out pretty well with all three agencies," said Bennett, who is up for reelection next month. "Harford County has a Triple-A. We're the first municipality to get that type of a rating—that's a home run. I was hoping for that. I would have probably been pretty happy with Single-A, but Double-A, I've been walking around on cloud nine all evening."

Bennett said the city made its presentation to the bond agencies two weeks ago, including tours of the city in Aberdeen's first attempt at a bond rating.

"This is the first time the city has ever gone out for a bond rating," Bennett said. "For us to get a Double-A for the first time, it's pretty phenomenal."