Fitch Reaffirms Bowie's 'AAA' Bond Rating

The financial health of the city of Bowie has been reaffirmed by credit rating agency Fitch, which has once again given city a ‘AAA’ bond rating.

The ‘AAA’ bond rating, the highest rating possible, indicates “extremely strong capacity to meet financial commitments,” according Fitch.

Bowie has maintained its 'AAA' bond rating since 2009.

"It's certainly a postive sign for us," said Bowie's City Manager David Deutsch.

The rating was based on several factors, key among them the city’s strong financial management, proximity to labor markets, above-average socioeconomic factors and low debt burden.

Above-Average Socioeconomic Indicators

As of December 2012, Fitch reports the unemployment rate in the city of Bowie was 5.6 percent, below the state average of 6.7 percent and the national average of 7.6 percent. Bowie is also considered an affluent city with a median income  of 117 percent to 142 percent higher than the Maryland state average income.

Strong Financial Profile

In 2012, the city’s budget saw a surplus of $3.2 million and was able to maintain reserves well above the recommended 25 percent. The city’s tax rate to $0.40 per $100 also remains below neighboring municipalities, reports Fitch.

Low Debt Burden

The city carry’s a debt burden is approximately 3.3 percent of total spending, consuming about $1.3 million of the city’s budget. Fitch credit’s the city’s low debt burden to its commitment pay-as-you-go capital, funding capital revenues through general revenues.