[Archived] City of Alexandria Receives Triple-A Bond Ratings

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

City of Alexandria Receives Triple-A Bond Ratings
Agencies Cite Strong Local Economy and Sound Fiscal Practies

Moody’s Investors Services, Inc. and Standard & Poor’s credit rating agencies have reaffirmed the City of Alexandria’s double triple-A bond ratings, the highest ratings possible, in conjunction with its upcoming issuance in January of $64.7 million in new General Obligation Bonds.

Alexandria, which will sell the tax-exempt 20 year bonds on Jan. 6, remains as one of only 36 cities and towns and 30 counties in the United States with perfect bond ratings from the nation’s two leading municipal credit rating agencies.

The City received the agencies’ highest ratings this week, following a top-to-bottom independent professional review of the City’s finances, economy and fiscal management.

Mayor William Euille, City Manager Philip Sunderland and other City staff met with rating agency officials in New York last month to provide officials with detailed information on the City’s fiscal health.

“This is really a report card that indicates the rating agencies regard the City’s fiscal condition and financial management policies as among the very best in the nation,” Mayor Euille said. “This Council remains committed to maintaining this level of excellence.”
These double triple-A bond ratings allow the City to borrow money at very low, tax-exempt rates, in order to fund capital projects like the planned, new T.C.Williams High School, park improvements, roads, sewers and City facilities.

“These ratings provide evidence that the City government continues to be financially sustainable,” Sunderland said. “The City’s financial condition is sound, and its financial stewardship practices at both the policy and administrative levels are excellent.”

In determining the City’s top bond rating of Aaa, Moody’s said, “ This highest rating . . . reflects the city’s continued strong tax base growth, above-average wealth levels, economic stability derived from proximity to the nation’s capital, sound financial operations, conservative budgeting and strong debt position.” The report also said, “Moody’s believes that Alexandria’s demonstrated history of conservative budgeting and sound financial practices provide strong credit strength going forward.”

The Standard & Poor’s report, in reaffirming the City’s top AAA rating, noted, “The city’s prominent role in the strong and diverse regional economy of Northern Virginia, which contributes to high wealth and low unemployment; a stable tourism sector that is closely tied to the city’s history in the American Revolution and Civil War; an increasing presence of federal government services located within the city; consistently strong fiscal operations bolstered by fiscal and debt policies; and a moderate debt burden.” Standard & Poor’s report also “reflects the expectation that the city’s superior credit characteristics will continue, as demonstrated by continued good reserves, a manageable debt burden, and ongoing stability in the local economy.”
In the next few weeks, the City’s official bond prospectus will be made available to the public through the City’s web site, and the bonds will be competitively bid using the Internet. Alexandria was the first local government in Virginia to bid is bonds using the Internet. This is now a relatively accepted practice.

“As a result of these top ratings, the City will be able to borrow successfully at the lowest possible interest rate for municipal bonds,” said Assistant City Manager Mark Jinks. “Issuing the prospectus via the Internet and accepting bids on-line also allows the City to reach a wider audience of potential bidders in the financial community more effectively.”

The City received its first triple-A rating from Moody’s in 1986 and from S&P’s in 1992. These ratings were reaffirmed in 1994, 1999, 2000 and 2001.

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