County's Credit Outlook Improves

Charleston County now has the highest rating possible among the big three credit-rating agencies.

On Wednesday, the county announced that Fitch Ratings upgraded Charleston County to AAA status. Moody’s Investors Service and Standard & Poor’s upgraded the county to AAA in 2010 and 2006, respectively.

S&P downgraded the U.S. government’s credit rating earlier this month, sending political and economic shockwaves across the globe. Back in Charleston, the improved rating is being greeted with some fanfare.

“We are pleased to join a select group of only 33 counties out of over 3,000 counties nationwide,” said County Council Chairman Teddie E. Pryor, Sr., in a news release. “We’re in the top one percent. This is great news for Charleston County residents and proof positive that we’re doing the right things."

In announcing the upgrade, Fitch cited “strong financial management and fiscal discipline” as a key to the upgrade, along with solid reserves and increasing diversification of the local economy, according to the county news release.

Like personal credit ratings, government ratings gauge risk, and are supposed to predict likelihood of default to creditors. Better credit ratings could save the county money when it borrows for capital projects.

“High bond ratings ultimately allow Charleston County to save taxpayers money by allowing us to pay lower interest rates on borrowed funds for road construction and other capital projects,” Pryor said.