Moody’s, a credit rating agency, withdrew its bond ratings for Montgomery County last month due to a missing 2023 audit.
The news was announced in a memo by Moody’s in July. The ratings, or lack thereof, can affect the favorability of terms by which a government can borrow money. A strong rating allows taxpayers to save money under more favorable borrowing terms, while a low bond rating, or no rating at all, has the opposite effect.
“Moody's Ratings (Moody's) has withdrawn Montgomery County, AL's issuer, GOLT, and lease ratings due to lack of sufficient information. This rating action concludes the review with direction uncertain that was initiated on April 23, 2025. The county has roughly $188 million in outstanding debt,” a Moody’s spokesperson said in the memo. “We have decided to withdraw the rating(s) because we believe we have insufficient or otherwise inadequate information to support the maintenance of the rating(s).”
Cody Clark, a spokesman for the Montgomery County Commission, told 1819 News on Wednesday, “The Montgomery County Commission acknowledges Moody's recent decision to remove its bond rating, a direct consequence of the delayed start and completion of the County's 2023 audit. We understand the significance of this action and the concerns it may raise among our constituents, investors, and stakeholders.
"We want to assure the public that the absence of the 2023 audit does not indicate any financial impropriety or instability within Montgomery County. The audit process has faced challenges, leading to a backlog. Specifically:
- The audit for the fiscal year ending September 30, 2022, was started in August 2023, and the final report was not issued until March 22, 2024.
- The audit for the fiscal year ending September 30, 2023, was not initiated until February 2025 and then delayed until April 2025 due to the auditor's commitments to complete the audit of another municipality. The audit field work is still actively in process.”
“We take our fiscal responsibilities with the utmost seriousness and are fully committed to transparency and accountability. Significant progress has been made on the 2023 audit, and we are working diligently with our auditors to finalize and submit it as quickly as possible. We anticipate the audit will be completed and publicly available by September 30, 2025,” Clark said. “Upon the successful completion and submission of the 2023 audit, we intend to re-engage with Moody's and other rating agencies to demonstrate our adherence to financial best practices and to seek reinstatement of our bond rating. We are confident that once the audit is provided, it will reflect the sound financial management and strong fiscal health of Montgomery County. The Commission remains dedicated to serving the financial interests of Montgomery County and its residents. We will continue to provide updates as the audit process progresses.”
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