Bamberg, South Carolina (December 2021) – Despite the uncertainty of global financial markets amid the ongoing COVID-19 pandemic, Bamberg County’s ‘A’ credit rating was affirmed by Standard and Poor’s, one of the largest credit rating agencies. Standard & Poor’s is a bond rating agency based in New York falls under the umbrella of S&P Global. It examines local governments all over the country and assigns ratings based on a number of facts, which are weighted towards a local government’s overall financial health and quality of its management.

Bamberg County sought to affirm its credit standing with Standard & Poor’s, to prepare for the issuance of the upcoming refinancing of the 2015 Installment Purchase Revenue Bonds, and the issue of new money for the renovation of the historic Courthouse.  County officials and staff took part in a Management Conference call with Standard & Poor’s, providing an update on County finance and economic activities. As a result of information furnished in this call, and an independent analysis of environmental, social and governance factors, Standard & Poor’s has issued the following credit ratings:

• New Rating: ‘A-‘transaction rating (stable outlook) for the $16.975 million bond, to refinance the existing IPRB 2015 Series bonds, to pay off the 2008 General Obligation Hospital bond, and to provide $7.0 million to renovate the Historic Courthouse.
• Affirmed Existing Rating:  ‘A’ issuer credit rating (stable outlook) with respect to the County’s general credit worthiness.

“We are encouraged by the confidence that Standard and Poor’s have placed in Bamberg County’s management of our finances. Throughout the economic stresses caused by the pandemic, our county remained fiscally disciplined, responsible, and strong,” says Larry Haynes, Chairman of the Bamberg County Council.

The County sought this bond rating because a bond that receives a high letter grade can pay a lower interest rate than a bond with a lower grade.  This means that a high graded bond is not as risky, and is a relatively safe investment, thus investors will settle for smaller returns.  Bamberg County has worked hard to maintain this high credit rating so that we can save money by issuing bonds with low interest rates.  The safest bonds are known as “investment-grade,” and Bamberg’s bonds fall into this category.

Regarding the news, Joey Preston, Bamberg County Administrator states, “I am delighted that Bamberg County’s credit rating has been affirmed by Standard and Poor’s. The county’s financial management team has worked hard to maintain this high credit rating with intentional measures of fiscal responsibility that benefits our hardworking taxpayers.”  

The full report from Standard & Poor’s is available on the County’s website, but below are just a few of the factors that are cited in the credit analysis:

• Stable Outlook – with new manufacturers and additional employment working to offset population loss.
• Conservative revenue and expenditure assumptions in the budget, focusing on equipment-replacement schedules.
• Stable budgetary performance with positive-to-balanced operations for FY21.
• Keeping reserves very strong while maintaining consistent liquidity.

The report denotes that if certain metrics were to improve, then S&P would take a positive rating action, meaning that this current rating could be upgraded to an even higher grade in the future.

You can view the County’s credit rating summary from Standard and Poor’s at: www.bambergcounty.sc.gov/presentations-1