LA PLATA — Charles County heads into its next round of borrowing for schools, water and sewer lines and roads with the best credit grade a local government can get, after all three major rating agencies again gave it their top mark.
Fitch Ratings, S&P Global Ratings and Moody’s Ratings each reaffirmed the county’s AAA bond rating with a stable outlook, the 10th consecutive year the county has held the highest possible rating, according to an Oct. 15 county news release. S&P also assigned its AAA rating to the county’s $95.8 million series 2026 general obligation bonds.
A higher rating lowers what the county pays to borrow, which in turn lowers how much of residents’ property and income taxes go to interest rather than projects. The county did not estimate how much the ratings save on this year’s sale.
What the borrowing pays for
The rating arrives as the county prepares a larger-than-usual bond sale. In September, the Chronicle reported that commissioners voted to move ahead with a bond issue of about $100 million, up 33% from $75 million in 2025, with the sale scheduled to close Oct. 27. The plan presented then included:
- $47.8 million for water and sewer projects
- $16.75 million for general government facilities
- $16 million for Board of Education renovations and $8.9 million for new school construction
- $7 million for transportation, $2.1 million for watershed protection, $1.2 million for environmental service projects and $250,000 for parks
The rating agencies’ figure of $95.8 million is smaller than the roughly $100 million discussed in September. The county’s release did not explain the difference.
What the agencies said
Representatives of each agency met with county leaders to review finances, budget management, audits and economic development before issuing their ratings. Each pointed to slightly different strengths:
- S&P cited conservative budgeting, strong reserves, sound financial planning, continued economic growth and manageable debt, and said the county’s planning culture keeps it on solid footing.
- Moody’s cited strong finances, substantial reserves and a stable local economy supported by development and federal installations, calling management’s financial controls a key strength.
- Fitch cited financial resilience, rapid population growth, favorable demographics and a modest long-term liability burden, along with proximity to jobs in Washington and Northern Virginia.
“Maintaining our Triple-A bond rating for the 10th consecutive year reflects Charles County’s strong financial foundation and our commitment to responsible stewardship of taxpayer dollars,” said Commissioner President Reuben B. Collins II.
Charles is not alone in Southern Maryland. Calvert County kept its AAA rating for an eighth year in September and later sold $78.9 million in bonds at 4.66% interest.
