S&P Affirms County's AA Bond Rating

Standard and Poor's has affirmed the AA Bond Rating for Atlantic County, which has obtained record low interest rates on $9.5 million in capital improvement bonds, the county said on Monday, Nov. 28.

Those bonds, which include 2011 general bonds, 2011 county college bonds, and 2011 state aid county college bonds, were sold at a net interest rate of 1.94 percent over 10 years, the county said.

According to the county, the general bonds will be used toward several road improvements and support the construction of the Next Generation Aviation Research and Technology Park, while the college bonds will fund the expansion of Atlantic Cape Community College.

S&P has affirmed the AA Bond Rating for the county, citing "strong financial management practices, maintenance of good reserves and low debt burden," the county said.

The county's rating has been raised twice since 2004. First, it went from A+ to AA- in 2004, and then to AA four years later, where it has remained since 2008. 

S&P has said Atlantic County includes the best practices critical to to supporting credit quality in daily operations, highlighted by its preparation of a rolling five-year financial forecast.

Additionally, Moody's Investment Services affirmed its Aa2 rating for $117 million in general obligation debt that includes the current 2011 issue, based on the county's stable outlook.

Moody's found the county to have adequate liquidity augmented by capital surplus funds. It also said it expects Atlantic County's direct debt burden to hold at .3 percent with no reliance on capital markets for short-term borrowing needs. 

"To maintain this outstanding credit rating while continuing to experience a national economic downturn and increasing competition in the regional gaming market is a significant accomplishment," Atlantic County Executive Dennis Levinson said. "Conservative management and pay-as-you-go financing contribute to our successful fiscal stability.

"This is a yet another testament to our sound financial principles and the commitment and expertise of our county staff. Twelve consecutive perfect audits and outstanding bond ratings speak volumes.”