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5 <br /> — Since the financial downturn in September 2008, credit quality of issuers has <br /> taken on a renewed importance to investors. <br /> — The average spread for an A rated borrower has increased from 0.33% from <br /> Nov 2004 — Dec 2008 to 0.70% since Dec 2008. <br /> Rating Agency Methodology Updates - graph <br /> Moody's Qualitative Factors <br /> Moody's <br /> • On January 15, 2014, Moody's updated its US Local Governments General Obligation <br /> Debt methodology and assumptions. <br /> • Under the new methodology, an initial indicative rating is calculated from a weighted <br /> average of four key factors: <br /> • Below the line qualitative adjustments can be made based upon certain factors. <br /> Rating Agency Methodology Updates <br /> S&P <br /> • On September 12, 2013, Standard & Poor's updated its US Local Governments <br /> General Obligation Ratings methodology and assumptions. <br /> • Under the new methodology, an initial indicative rating is calculated from a weighted <br /> average of seven key factors: <br /> • Up to a one-notch adjustment can be made from the indicative rating based on other <br /> qualitative factors. <br /> • US Local Governments General Obligation Ratings Methodology - graph <br /> Fitch <br /> • On April 18, 2016, Fitch updated its US Tax-Supported Rating Criteria. <br /> • Under the new methodology, Fitch has identified four key rating factors that play a <br /> significant role in driving the rating outcome for a given issuer in the context of its <br /> economic base: <br /> • The factors cover both the institutional framework in which an issuer operates, which <br /> varies by level and location of government, and performance within that framework. <br /> • Fitch publishes specific rating category evaluations for each factor, with analysis <br /> focused on long-term trends and expectations. <br /> • Key Ratings Factors - graph <br /> Debt Policy Overview <br /> County Policies- page 8 <br /> • The County Board adopted a series of financial policy guidelines on April 5, 2011, <br /> including: <br /> — A Cash Management and Investment Policy. <br /> — A General Fund Balance Policy: <br /> o The County will strive to maintain an unassigned fund balance in the <br /> General Fund of 17% percent of budgeted general fund operating <br /> expenditures each fiscal year. The amount of unassigned fund <br /> balance maintained during each fiscal year should not fall below 8% <br /> percent of budgeted general fund operating expenditures, as <br /> recommended by the North Carolina Local Government Commission. <br /> — Tax Supported Debt Policies: <br />