PICKAWAY – Moody Investor Service or Moody’s for short has upgraded the credit rating of Pickaway County from a Aa2 from a Aa3 rating. Moodys is part of the three major credit rating agencies. Moody’s judges Counties based on return on bonds and investments much like your standard credit ratings. Moody’s rates counties from Aaa to a C rating, Aaa being the best and C being the lowest.
What this means is that the county rating gives Pickaway County Commissioners the ability to secure bonds for major projects, or in a crisis of a major financial catastrophe be able to secure the county’s investments.
Pickaway Counties recent major projects have been the enhanced 911 system for Pickaway County sheriff, the Pickaway County Fairgrounds Revitalization, renovations to Memorial Hall, and the acquisition of the former Brooks Yates center. Recently Brian Stewart Pickaway County Commissioner reported that this year Pickaway is in the “black” spending 600,000 dollars less than last years approved-budget.
Here is the press release from Goody’s released on February 12
Moody’s Investors Service has upgraded Pickaway County, Ohio’s issuer and general obligation limited tax ratings to Aa2 from Aa3. The county has approximately $1.5 million of Moody’s rated general obligation limited tax debt outstanding.
The issuer rating represents Moody’s assessment of hypothetical debt of the county supported by a general obligation unlimited tax (GOULT) pledge. The county does not currently have any outstanding debt supported by a GOULT pledge. The pledge supporting the county’s Series 2010 bonds is considered limited tax as the basic security is the requirement that the county levy ad valorem property taxes within the ten-mill limitation imposed by Ohio law.
RATINGS RATIONALE
The Aa2 issuer rating reflects the county’s very strong financial position, ongoing economic and tax base expansion, proximity to the rapidly growing Columbus (Aaa stable) metro area, and moderate debt and pension burden.
There is no distinction between the county’s Aa2 GOLT rating and the issuer rating because payment of GOLT debt service is a first budget obligation payable from all available revenues.
RATING OUTLOOK
Outlooks are not typically assigned to local governments with this amount of debt.
FACTORS THAT COULD LEAD TO AN UPGRADE
-Continued economic growth that significantly improves resident income and wealth levels
FACTORS THAT COULD LEAD TO A DOWNGRADE
-Significant increase in the county’s debt and/or pension burden
-Trend of operating deficits or a material decline in financial reserves
LEGAL SECURITY
The Series 2010 bonds were issued by the Ohio Air Quality Development Authority, with debt service payments secured by the requirement that the county levy ad valorem property taxes within the ten-mill limitation imposed by Ohio law. Additional security is provided by the state’s requirement that debt service carries a first budget obligation.
PROFILE
Pickaway County is located in central Ohio (Aa1 stable) and serves an estimated resident population of 56,804. The county provides basic municipal services and operates a small water and sewer utility. The county employs approximately 300 full time staff.
METHODOLOGY
The principal methodology used in these ratings was US Local Government General Obligation Debt published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
