OCEAN CITY- On the eve of its latest bond sale, a $12.7 million sale of general obligation bonds to finance among other things the Performing Arts Center and the new Beach Patrol headquarters, the town of Ocean City got another dose of fiscal good news with the announcement of an upgrade in the resort’s bond rating from another rating agency.
In November, Fitch raised Ocean City’s bond rating to AA-minus, representing an upgrade over its prior designation. This week, Standard and Poor’s nudged the resort’s designation even higher to a straight AA rating just days before it entered the bond market for the sale of $12.7 million in general obligation bonds.
According to Standard and Poor’s, Ocean City’s newest bond rating is based on the town’s strong wealth and income indicators, very strong budgetary flexibility, strong budgetary performance with a diverse revenue stream and very strong cash reserves to cover debt and expenditures.
“The stable outlook reflects Standard and Poor’s opinion of what it considers the town’s strong financial management practices and the view that the town will likely continue to make the necessary adjustments to keep expenditures in line with revenue.”
At Wednesday’s EDC meeting, Ocean City Councilwoman Mary Knight gushed about the latest rating.
“It’s really amazing for a resort town,” she said. “While so many resorts are seeing their bond ratings downgraded, we continue to see ours improve, despite what the naysayers are saying.”
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