Moody?s Cites Solid Finances of Mobile County

Posted on: Sep 15th, 2015 | News and Announcements

Citing Mobile County?s ?solid financial position and affordable debt burden,? Moody?s Investors Service assigned an Aa2 rating to a new borrowing program. ?We continue to abide by strict borrowing and spending limits and the reward is a high credit rating and lower borrowing costs,? said Mobile County Commission President Jerry Carl. Moody?s gives an upbeat forecast of the future for Mobile County, anticipating ?significant upcoming industrial and commercial growth,? along with ?benefits from a diverse economic base.? Importantly, the Moody?s report notes that the county?s ?financial position will remain stable over the near term after two consecutive years of surpluses and further improvement expected in fiscal 2014 and 2015.? Nevertheless it does report that the surpluses followed four years of declines and a $32.1 million or 23.3 percent drop in General Fund revenues. Mobile County Finance Director Michelle Herman has said she anticipates a surplus at the end of this fiscal year as well, due primarily to an increase in sales tax revenues. The fiscal year ends September 30. With the implementation of a Debt Service Policy, the county?s debt burden ?remains affordable over the near term, given low direct debt levels,? according to Moody?s. ?A stable bond rating instills confidence in Mobile County as a breeding ground for successful businesses,? said Mobile County Commissioner Merceria Ludgood. ?We need to stay the course.? The Moody?s report cites Airbus as the newest generator of new businesses and jobs, including the $37 million Honeywell Inc. power facility and the MAAS paint hanger, both at Brookley Aeroplex. Mobile County also is the beneficiary of the second largest natural gas reserve in the world, according to Moody?s, with 20 onshore and 16 offshore gas fields. Chemicals, shipping, the Port of Mobile and the University of South Alabama remain critical economic engines, the report said. ?Besides low borrowing costs, good budgetary practices create a stable environment for county government and economic growth,? said Mobile County Commissioner Connie Hudson.