[Archived] Rating Agencies Reaffirm Alexandria’s Bond Ratings

Standard & Poor’s and Moody’s Investor Service have reaffirmed the City of Alexandria’s bond ratings of AAA and Aaa, respectively.  The City has maintained these top grades from both major bond rating agencies since 1992.

Bond ratings (expressed in letters from “AAA” to “C”), are grades given to bonds that indicate their credit quality.  Private independent rating services provide these evaluations of a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely manner.

In reaffirming the City’s AAA bond rating, Standard and Poor’s (S &P) cited the City’s “very strong management conditions with ‘strong’ financial management policies and practices,” as well as the rapid debt amortization in which the City expects to retire more than two-thirds of its debt over the next ten years.  S & P reviewed the City’s economy, budgetary flexibility and performance, overall management, debt and liabilities before providing Alexandria with a “stable” outlook.

In reaffirming the City’s Aaa bond rating, Moody’s rationale reflects the City’s “dynamic tax base with above average socioeconomic indicators, a satisfactory financial position supported by conservative budgeting and favorable debt profile.”  Moody’s recognized one of the challenges the City faces is that the ongoing use of reserves (fund balance) could limit our financial flexibility.  The City uses fund balance for non-operating, one time expenditures, such as the projects in the Capital Improvement Program, as well as contingency funds for extraordinary events related to weather and other emergencies.

“Regardless of the state of the nation’s economy over the past several years, Alexandria has been able to maintain our longstanding, solid financial reputation, which is reflected in the positive response from the rating agencies,” noted Mayor William D. Euille.  “We have achieved these solid results by being focused on what matters and keeping our actions true to our strategic direction.  As a result we have provided Alexandria with a solid economic and fiscal foundation that will reap benefits far into the future.” 

For media inquiries, contact Craig T. Fifer, Director of Communications & Public Information, at craig.fifer@alexandriava.gov or 703.746.3965.