Moody’s Investors Service on March 16 revised its outlook on Montgomery County, Pa., general obligation bonds to stable from negative while affirming its Aa1 rating.
This marks Montgomery’s second straight year in the black after five years of operating deficits, chief financial officer Uri Monson said recently. The county, Pennsylvania’s third largest, also reduced investment banking fees by shifting more assets into low-cost index funds, also called passive funds.
“The stable outlook reflects the county's improved financial position, which we expect will be maintained over the medium term,” Moody’s said about two weeks after the county, which covers Philadelphia’s northwest suburbs, reported a $1.15 million surplus for 2014.
Montgomery has scheduled a $25.6 million sale for later this month. Proceeds will refund the county’s Series 2006C bonds for an estimated savings of greater than 4%, according to Moody’s.
Moody’s said the county will have $382 million of GO debt after the sale