|
|
February 28, 2025
For Immediate Release
Ottawa County is proud to announce that Moody’s Investors Service has reaffirmed the County’s prestigious Aaa bond rating, the highest possible rating. The rating reflected the County’s strong financial position, responsible fiscal management, and robust local economy. Read the credit opinion released on February 20 (PDF).
Moody’s cited Ottawa County’s consistently strong available fund balance, proactive budget management, and modest fixed costs as key factors in maintaining the Aaa rating. The County’s financial stability is further supported by its growing and diverse economy, anchored by strong manufacturing, education, and healthcare sectors.
“This reaffirmation underscores Ottawa County’s commitment to responsible financial stewardship,” said John Teeples, Ottawa County Commissioner and Chairman of the Board. “Our strong reserves, prudent budgetary practices, and strategic investments allow us to provide high-quality services to residents while maintaining long-term fiscal health and keeping property taxes among the lowest in the state.”
Despite economic challenges, Ottawa County has sustained financial resilience through disciplined planning. Moody’s acknowledged the County’s stable financial operations, noting that even with planned capital investments, reserves remain strong and well above the County’s reserve policy.
“This rating reaffirms that Ottawa County remains a great place to live, work, and invest,” Teeples added. “We are committed to continuing our tradition of sound financial management to support future growth and community well-being.”
|
|
 John Teeples, District 7 Commissioner, Board Chair
|
|
-
Cost of Borrowing: Higher bond ratings typically result in lower borrowing costs for counties when they embark on a capital project, like a new building. A strong credit rating allows counties to issue bonds at lower interest rates, saving taxpayer money on debt service payments.
-
Investor Confidence: Bond ratings provide investors with an objective assessment of a county’s creditworthiness. Higher ratings indicate lower risk, which attracts a broader pool of investors willing to purchase county bonds. This increased demand can further drive down borrowing costs.
-
Access to Capital: Counties rely on bond markets to finance essential infrastructure projects, such as courthouses, bridges, or utilities. A favorable bond rating ensures access to capital markets and facilitates the timely execution of projects critical for community development and growth.
-
Financial Management: Maintaining a strong bond rating requires sound financial management practices, including prudent budgeting, debt management, and fiscal responsibility. Bond ratings serve as a measure of a county’s financial health and governance effectiveness.
-
Economic Development: Counties with higher bond ratings often enjoy greater economic stability and are more attractive to businesses and investors. A positive credit rating can signal a stable and favorable environment for economic development, leading to increased investment, job creation, and growth opportunities.
-
Reputation and Image: Bond ratings reflect a county’s reputation and credibility in the financial markets. A downgrade in bond ratings can tarnish a county’s image, signaling financial distress and potentially affecting its ability to attract investors and secure favorable terms in the future.
|
|
|
|
