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On Nov. 14, 2024, Fitch Ratings upgraded two of Dare County’s credit ratings.

The Issurer Default Rating was moved to AA+ from AA and the county’s credit rating on Limited Obligation Bonds moved to AA from AA-.

According to the announcement, “the rating reflects an ‘ample’ level of budgetary flexibility and assumes maintenance of unrestricted general funds reserves at least equal to 7.5% of spending. The county has historically maintained reserves above their 25% fund balance policy.”

In fiscal year 2024, ending June 30, 2024, the fund balance was 35.74%, an increase from 33.89% from the prior year, according to the Annual Comprehensive Financial Report for Fiscal Year 2024, which is now posted on DareNC.gov.

The upgraded ratings will influence the interest rate offered on limited obligation bonds, which the county issues for its ongoing construction projects.

Fitch Ratings is one of the world’s top three credit ratings agencies. Fitch Ratings is part of Fitch Group, a global leader in financial information services with operations in more than 30 countries. The global company has two headquarters: London and New York. The Fitch Group is owned by Hearst.

Two other credit ratings agencies are members of the big three: Moody’s and Standard and Poor’s.

The AA+ for the Issuer Default Rating is “one of the highest credit ratings that can be assigned by Fitch Ratings, placing Dare County among a select group of local governments nationwide,” states a media release from Dare County.

The upgrade is based on financial performance, economic stability, balanced economic and demographic factors and high revenue-raising capacity, states the release.

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