City Earns AAA Bond Rating from All Three Rating Agencies
Moody’s Upgrades to Aaa, Fitch and S&P Reaffirm AAA
Revised and Posted Tuesday, May 15, 2018 -- The City of Falls Church received a Aaa bond rating from Moody’s Investors Service and reaffirmed AAA bond ratings from Fitch Credit Ratings and S&P’s Global Ratings this week. These are the highest ratings available and signify that all three agencies consider the City to have exceptional credit-worthiness and can easily meet its financial obligations as it prepares to issue significant new debt through Fiscal Year 2020.
The bond ratings will apply to the 2018 bond sale to fund the City Hall Public Safety Project, design for the High School Campus Project, and a number of other capital projects. The City anticipates selling about $24.2 million in bonds on May 23 with a closing date of June 6.
Next year, the City intends to issue additional debt for the construction of a new George Mason High School, and for the renovation and expansion of the Mary Riley Styles Library. In total, the City Capital Improvements Program includes $147 million in investments in City and school facilities in the next three years.
“Our top-notch bond ratings are a reflection of the City’s sound financial management,” said Mayor David Tarter. “This could not be accomplished without leadership from City Council and staff and community support for prudent and well-defined financial policies and a prioritization of City goals and investments. Having the highest bond ratings will save taxpayers tens of thousands of dollars in lower interest and borrowing costs for the new high school and other capital needs.”
A strong economy, prudent financial management, and budgetary flexibility were cited as a few of the reasons for the ratings. The reports put the City of Falls Church in an elite group of Virginia localities with the highest ratings possible. The three triple-A bond ratings will allow the City to get the lowest possible interest rates to finance capital projects.