The 'AAA' rating on municipal debt has been awarded to 20 more counties by Standard & Poor's Ratings Service since its last report in January 2008, bringing the number to 67.
According to the rating service, the large increase reflects not only criteria changes, but also the inherent economic, financial and managerial strength of the counties, which have performed extremely well through the current recession.
Of the new 'AAA' rated counties, 14 were upgraded to 'AAA' from 'AA+', while the debt of six counties was rated 'AAA' right from the start. The number of 'AAA' rated counties has increased to 67 up from 42 in October 2006.
The counties are geographically dispersed, with the southeast region of the United States having the largest number 'AAA' rated counties (22).
The report's authors note that their examination of 'AAA' rated counties' ratios shows that population size and geographic location are not significant factors. The 'AAA' rated counties come from 25 states (up from 21 states since 2008) across the country. There are what the authors view as large 'AAA' rated counties−such as Maricopa County, Ariz. (4 million residents); Harris County, Texas (3.98 million residents); and San Diego, Calif. (3.17 million residents); and what they consider to be small population-based counties such as Carver County, Minn. (population 86,236); Albemarle County, Va. (population 93,668); and Hanover County, Va. (population 103,025).
