S&P Global Ratings and Moody’s Investors Service have reaffirmed the City of Alexandria’s top bond ratings of ‘AAA’ and ‘aaa,’ respectively, helping the City achieve competitive, low interest rates.
“We are very proud that once again the City has been recognized for its economic development initiatives, extensive focus on environmental and social risks, and strong policies that govern our financial operations,” said Mayor Justin Wilson. “Both ratings agencies acknowledged the City’s efforts beyond our strong financial condition, including affordable housing initiatives and environmental protections.”
In its credit highlights, S&P Global cited Alexandria’s “robust economic growth, including new developments around a recently opened metro station alongside residential and commercial growth across four key growth areas in the City.” Moody’s credit analysis mentioned “ample reserves and liquidity, supported by adherence to comprehensive fiscal policies” as one of the City’s credit strengths. Both opinions noted the City’s efforts to increase the availability of affordable housing.
The City of Alexandria has maintained the highest grades from both major bond rating agencies since 1992, which allows the City to pay low interest rates on bonds issued to fund major projects. Later this year, the City will issue $258 million of tax-exempt general obligation bonds to fund capital improvement projects. Significant projects include the Minnie Howard Redevelopment Project, the newly constructed Douglas MacArthur Elementary School, and infrastructure improvements for the redevelopment of West End, previously Landmark Mall.
S&P Global Ratings rated the City’s general obligation bonds “above the sovereign,” because “the city can maintain better credit characteristics than the U.S. [government] in a stress scenario.”
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Original source can be found here.
