[Archived] City of Alexandria’s AAA/Aaa Top Bond Ratings Reaffirmed

City Press Release


	For Immediate Release	For More Information, Contact
	May 17, 2007 PIO# 122-07/rdo	Steve Mason, Director of Communications, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

City of Alexandria’s AAA/Aaa Top Bond Ratings Reaffirmed
City Scores Highest Rating For Financial Management

Moody’s Investors Service and Standard & Poor’s credit rating agencies have reaffirmed the City of Alexandria’s top AAA/Aaa bond ratings, which are the highest ratings possible. The ratings were provided in conjunction with the refinancing of $23.2 million in previously issued City general obligation bonds to lower interest rates.

The City received the agencies’ highest ratings last week, following an independent professional review of the City’s finances, economy and financial management.

In reaffirming the rating, Standard & Poor’s cited the City’s healthy economy, low tax rates, tax base growth, sound financial planning, and strong financial management practices as the basis for awarding their top rating. This was the first year that the City was graded under Standard & Poor’s new Financial Management Assessment system. The City achieved a “strong” financial management assessment, the highest rating possible, in all seven of the Financial Management Assessment categories rated by Standard & Poor’s.

Moody’s Investors Service stated that, “Alexandria’s history of conservative budgeting and sound financial management practices provide credit strength going forward.” Moody’s report also stated that this highest quality rating “reflects the City’s diverse tax base, above average wealth levels, and economic stability.”

“Getting the AAA/Aaa ratings reaffirmed indicates that City Council’s decisions over the long-term on financial and budget policies, as well as our overall long-range strategic direction, are ones that both rating agencies recognized as sound,” said Mayor William Euille. “In particular, it was rewarding to achieve the “strong” financial management designation from Standard & Poor’s in all seven of their assessment categories.”

The $23.2 million in bonds refinanced were replaced by bonds with a low 3.9% true interest cost (TIC). This refinancing will save the City some $939,000 over the life of the bonds, which equals a net present value savings of $716,000. The bonds were underwritten by BB&T Capital Markets, as well as Morgan Keegan & Company, and were sold to institutional investors, as well as to retail customers. Davenport & Company served as the City’s financial advisor.

# # #