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Attachment 4 <br /> Historical Credit Spreads ORANGE COUNTY <br /> NORTH CAROLINA <br /> ■ The County's credit rating has a direct impact on the cost <br /> of borrowing, which in turn effects the County's debt 30-Year <br /> s <br /> capacity. 7.5 <br /> 7 <br /> — The credit spread is the premium an issuer pays to 6.5 <br /> the purchaser of their bonds (i.e. higher interest o 5.5 <br /> rate) as compensation for increased credit risk. 5 <br /> 4.5 <br /> F VW <br /> — Since the financial downturn in September 2008, a 4 <br /> 3.5 <br /> credit quality of issuers has taken on a renewed 3 <br /> importance to investors. 2.5 <br /> 2 <br /> — The average spread for an A rated borrower has 1.5 <br /> OR p p0 O� O5b 00 ti0 titi ti� tilb ti� "P '11 <br /> increased from 0.33% from Nov 2004 - Dec 2008 <br /> to 0.70% since Dec 2008. —AAA —AA —A —BBB <br /> Credit Spreads (%) vs the 30-yr AAA M M D <br /> Nov 2004 - Dec 2008 <br /> Ratin Min Max Averaae <br /> AA 0.04 0.19 0.10 <br /> A 0.15 1.26 0.33 <br /> BBB 0.30 2.52 0.60 <br /> Dec 2008 - June 2017 <br /> Ratin Min Max Averap-e <br /> AA 0.09 0.53 0.23 <br /> A 0.46 1.11 0.70 <br /> BBB 0.69 2.58 1.33 <br /> Note:credit spreads compared to the 'AAA'equivalent <br /> DAVENPORT&COMPANY <br /> June 13,2017 Orange County, NC 4 <br />