Haywood County bond rating inches up
Thanks to the hard work and prudent fiscal decision making of both elected officials and administration, Haywood County’s been rewarded with a slightly higher bond rating by 160-year-old financial services agency and credit bellwether Standard & Poor’s.
“It shows we are on the right track,” said County Manager Bryant Morehead, of the decision by S&P to adjust Haywood’s bond rating from AA to AA+.
Morehead said the decision cited a strong economy, Haywood’s inclusion in the Asheville Metropolitan Statistical Area, robust management, good financial policies, stout budgetary performance, a “very strong” debt and contingency liability profile, and durable institutional framework.
“Our debt is falling off,” he said. “We don’t have more debt than we can afford, and we’re doing a good job of that.”
S & P’s rating system gives governments letter grades from a low of D on up thorough C, CC, CCC, B, BB, BBB, A, AA and AAA. Plusses and minuses may also be added to each letter grade for further delineation, although they aren’t usually utilized for AAA, meaning Haywood County is only one small step away from the highest rating possible.
“An upgrade like this usually means about a quarter percent interest [off a loan],” said Morehead. “That’s not a whole lot, but if you’re going to [borrow] $20 million dollars over 20 years, a quarter percent is a lot of interest, and it saves taxpayer dollars.”
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A 20-year, $20 million loan at 4 percent interest would end up costing $29.09 million with interest, but that same loan at 3.75 percent interest would end up at $28.46 million, a savings of more than $628,000 in interest payments over the life of the loan.
Commission Chairman Kevin Ensley complimented former chairman Mark Swanger, and former longtime commissioners Mike Sorrells and Bill Upton, for their work on stabilizing Haywood County’s finances.
“A rating doesn’t come around like this just overnight,” he said.
Last July, State Treasurer Dale Folwell announced that all three major bond rating agencies, including S&P, had re-affirmed the state’s AAA rating.
