Wednesday, August 30, 2017
By Justin Wier
YOUNGSTOWN
Mahoning County’s bond ratings remain unchanged after Standard & Poor’s issued new ratings this week.
County sales tax supported bonds and general obligation notes maintained their ratings of AA and A+, respectively.
S&P rates bonds on a scale of D to AAA, with D being the lowest-rated and AAA being the highest-rated. Bonds rated BBB through AAA are considered investment grade. Bond ratings are similar to credit ratings in that they affect the interest rates at which entities can borrow.
In both cases, S&P projected a stable outlook for the county.
“We think that this was a victory because of the [Medicaid-managed care organization tax] issue,” county Auditor Ralph Meacham said.
The state’s MCO tax remains in limbo after Gov. John Kasich vetoed a potential fix to concerns raised by the federal Centers for Medicare and Medicaid Services.
Mahoning County receives between $4 million and $5 million annually from the tax on Medicaid.
With that in jeopardy, it’s notable that S&P refrained from downgrading the ratings, Meacham said.
State legislators created a short-term fix for the MCO issue through the 2018 fiscal year, and are working to find a long-term solution.
Meacham, Commissioner Dave Ditzler and other county officials traveled to New York more than a week ago to discuss the coming ratings with S&P.
“We find it really important to go out and sit across the table from them,” Meacham said.
The ratings provide an outside view of the county’s financial stability, he added.
The reports state that Mahoning County has a weak economy centered on the manufacturing and oil and gas industries coupled with declining population. However, it adds that recent population declines are less severe than past population declines.
It also notes that adequate management, strong budgetary performance and a very strong debt position in the county counter the weak economy.