Baltimore County, Maryland, issued $382.4 million in bonds to finance a variety of capital costs and refund previously issued securities.
The county sold the bonds in four series, with maturities ranging from 2025 to 2054 and yields from 2.91% to 3.93%. All of the bonds pay interest at 5%. The securities received a rating of AAA from Fitch Ratings, Aaa from Moody’s Investors Service, and AAA from S&P Global Ratings.
The rating “recognizes the county’s role as the center of an important and growing MSA that contributes significantly to the national economy,” Fitch analysts wrote, referring to the metropolitan statistical area.
The collapse of Baltimore’s Francis Scott Key Bridge earlier this year highlighted the county’s role in the U.S. economy. The March collision between the bridge and a Sri Lanka-bound cargo ship resulted in the partial closure of the Port of Baltimore, which fully reopened just last month. The port is the third-largest on the East Coast; economists estimated that its closure cost the national economy some $15 million per day.
Baltimore County is currently assessing the long-term impact of the bridge collapse on its economic development, according to the official statement accompanying the sale of the bonds. It does not expect to pay for the rebuilding of the bridge.
The county will use the bond proceeds to upgrade its water and sewer system, improve its school facilities, and refund bonds that it sold in 2014.
The bonds are general obligations of the county, backed by its full faith and credit.
Public Resources Advisory Group, Inc acted as financial advisor.