The City of Charlottesville has again received the highest rating from both S&P Global Ratings and Moody’s Investor Services.
The rating reviews were conducted as part of the City’s most recent bond sale which was held on June 7, 2022. $26 million dollars in bonds were sold in a competitive sale. Fidelity Capital Markets purchased the bonds by offering the lowest interest rate at 3.07%. The funds will be used to fund projects in the City’s Capital Improvement Plan.
The AAA bond rating reflects an unbiased assessment of the credit worthiness of the City’s debt obligations to investors in the public financial market. The higher the rating, the greater the likelihood of full and timely repayment of the debt which equates to lower risk to investors and lower interest rates to municipalities.
Both rating agencies cited several key factors in assessing the City’s creditworthiness:
- A strong and growing economy anchored by a stable institutional presence.
- Strong and comprehensive financial policies and practices.
- Sound budgetary performance with adequate financial flexibility.
- Manageable debt burden.
The AAA rating helps to ensure that the City incurs lower borrowing costs when compared to other borrowers with lower ratings. Over the life of the bonds, these cost savings ensure that more taxpayer dollars get allocated to projects.
“The City is honored to have once again received the highest bond ratings possible by both Moody’s and S&P,” said Interim City Manager Michael C Rogers. “The rating agencies’ findings are a stamp of approval for the City’s prudent financial management, and a positive confirmation of the overall strength of Charlottesville’s economy.” While Charlottesville like most communities is not 100% back to pre-covid levels in terms of economic activity, we are gaining quickly. In addition to very sound financial policies, we are fortunate to have very strong financial management staff.
Moody’s has rated Charlottesville AAA since 1973 and S&P Global has rated the City AAA since 1964.
Original source can be found here.
