Frederick’s $134.21 million of general obligation debt outstanding got a boost last week from Standard & Poor’s to AA from AA-minus based on the city’s continued economic base growth.
The city’s strong and expanding local economy with significant commercial and retail expansion, its location and participation in the diverse and vibrant Washington-Baltimore regional economy, consistent and healthy property tax base growth, and moderate debt burden contributed to the upgrade, Standard & Poor’s said. The outlook is stable.
The city’s overall debt burden is a moderate $4,181 per capita, or 5% of market value, the rating agency said, adding that officials will repay all city debt by 2026.
Frederick’s property tax base has demonstrated “consistent, healthy growth,” and the tax base has grown by an average of 6.8% annually over the past five years to a current $4.8 billion, or a comparable $5.1 billion market value, Standard & Poor’s said.