For Immediate Release: July 14, 2017
S&P Global Ratings 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 $100.9 in general obligation tax exempt bonds to fund municipal and school facility capital projects and $4.4 million in general obligation taxable bonds to fund affordable housing.
“The bond rating agencies have once again recognized Alexandria’s proactive management and sound financial policies,” 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 2016, was just 2.12% 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 rating also includes a stable outlook, reflecting the likelihood that “the City will maintain its satisfactory position due to proactive management, sound financial policies and continued tax base growth and diversification.”
S&P recognized the City’s strategic development plan, which emphasizes expanding the tax base and recruiting and retaining business. S&P also recognized the City’s strong management and financial policies and practices, and noted that these “financial practices are strong, well embedded and likely sustainable.”