Standard & Poor’s and Moody’s Investors 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 make pay a bond’s principal and interest in a timely manner.
In reaffirming the City’s AAA bond rating, S&P cited the City’s “strong and diverse local economy,” “strong financial management,” as well as a “moderate-to-low debt burden.” S&P also rated the City’s financial management practices “strong,” which is the highest rating given in the financial management category.
In reaffirming the City’s Aaa bond rating, Moody’s Investors Service stated that “this Aaa quality rating reflects the city’s strong and vibrant tax base, above average socioeconomic profile,” and cited Alexandria’s “sound financial condition, conservative budgeting,” and “favorable debt profile.”
“This positive response from the rating agencies reflects the careful financial planning and strong fiscal management the City had in place during the economic downturn,” said Alexandria Mayor William D. Euille. “It also reflects the very sound condition of the Alexandria economy. We are proud to have maintained our longstanding, solid financial reputation and these bond ratings will help our City continue to move forward as the economy recovers.”