Calvert County, Maryland, issued $60.9 million in bonds to finance a variety of capital improvement projects.
The bonds mature between 2024 and 2048, yielding between 2.29% and 3.8%. They received a rating of AAA from Fitch Ratings, Aaa from Moody’s Investors Service, and AAA from S&P Global Ratings.
The rating reflects “the county’s low long-term liability burden, very healthy reserve levels, superior budgetary flexibility and prudent budget management, which collectively support an expectation for a high level of fundamental financial flexibility through economic cycles,” Fitch analysts wrote.
The bond proceeds will fund public safety, schools, and infrastructure improvements, among other projects. The majority, $45 million, will finance a new administrative building for the county government.
Calvert County’s tax revenue is largely dependent on two energy facilities: a nuclear power plant and a natural gas terminal. Together, payments by the companies that own the two facilities made up almost 20% of the county’s 2022 general fund revenue. The companies “remain a large presence in the community and continue to provide significant employment and tax revenue,” the official statement accompanying the sale of the bonds reads.
Calvert County is on the west side of the Chesapeake Bay in southern Maryland. The bonds are general obligations of the county, backed by its full faith, credit, and taxing power.
Morgan Stanley & Co LLC served as underwriter on the issuance. Davenport & Company LLC acted as financial advisor.