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City of Charlottesville Awarded AAA Bond Rating
The rating reviews were conducted as part of the City’s upcoming bond sale scheduled for May 15. The ratings reflect 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.
- Very strong management with comprehensive policies and practices.
- Sound budgetary performance with adequate financial flexibility.
- Low and manageable debt burden.
The City currently has $123 million dollars in outstanding debt. The City’s AAA rating and lower borrowing costs will save taxpayers approximately $7.5 million over the life of the bonds compared to borrower with a lower rating.
“The City is honored to have once again received the highest bond ratings possible by both Moody’s and S&P,” said City Manager Maurice Jones. “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.”
Moody’s has rated Charlottesville AAA since 1973 and S&P Global has rated the City AAA since 1964.