Macomb County's AAA Bond Rating Reaffirmed

Although Standard & Poor's downgraded the United States' bond rating one level, it has affirmed Macomb County's AAA rating, Mark Hackel, county executive, announced Tuesday.

“I am very pleased with our rating,” Hackel said.  “We are going against the grain, considering the downward trend for other government entities in our region and across the country.”

The rating affirmation is based on a recent conference call between Standard & Poor's analysts and members of the county’s Finance and Public Works departments. The county's financial outlook is considered stable.

“It reflects the agency’s recognition of the county’s strong budgetary and fiscal management practices,” Hackel said in a news release. “S&P has given Macomb County a strong vote of confidence in the county’s ability and approach to managing its financial operations.”

Hackel commended Public Works Commissioner Anthony V. Marrocco and Treasurer Ted Wahby for their financial leadership.

The highest possible rating means taxpayers will pay less interest to finance bonds on construction projects, such as the Public Works Department’s upcoming $30 million Clintondale Pump Station improvement project in Clinton Township, according to Hackel.

Marrocco said, “Our unblemished bond payment record over six decades is a major factor in the S&P rating."

According to the county, S&P's bond rating affirmation is based on:

• Deep economic base and participation in the Detroit metropolitan area, though challenged by the current economic downturn and job losses.
• Maintenance of strong general fund reserve levels, despite challenges posed by this current revenue climate.
• Strong management practices.
• Additional liquidity found in the delinquent tax revolving fund.
• Moderate debt burden at $3,336 per capita and 5.2 percent of market value, with limited future capital needs.

Macomb County is one of three counties in Michigan and one of 67 counties nationwide to have the AAA rating.