Rating Agencies Reaffirm Highest Bond Ratings for City of Alexandria
For Immediate Release: July 19, 2016
S&P Global Ratings (formerly Standard & Poor’s Rating Services) and Moody’s Investors Service have reaffirmed the City of Alexandria’s top bond ratings of ‘AAA’ and ‘Aaa,’ respectively, in advance of the City’s planned sale of $80.5 in general obligation bonds to fund municipal and school facility capital projects.
“The rating agencies have once again recognized Alexandria’s healthy and stable economy, coupled with solid local government policies and plans,” said Mayor Allison Silberberg.
The City has maintained the highest grades from both major bond rating agencies since 1992, which enables the City to pay very low interest rates for the life of bonds issued to fund major projects. The interest rate for the City’s most recent bond sale, in 2015, was just 2.75% over a 20-year period.
In reaffirming the City’s bond rating, Moody’s cited Alexandria’s “dynamic tax base with above average wealth levels and a satisfactory financial position that is supported by conservative budget management and manageable debt and pension burdens.” Moody’s analysis recognized the positive trend in available fund balance, which has increased for each of the last two fiscal years. Having an increased fund balance allows the City to better manage unexpected revenue or expenditure issues if they arise. Moody’s also cited the City’s long term fiscal planning and proactive management as factors contributing to the ‘Aaa’ rating.
S&P recognized the City’s robust economy and favorable debt and contingent liability position. S&P also believes Alexandria will maintain adequate budgetary performance due to the City’s strong management conditions.