ARLINGTON, Va. – For the 13th consecutive year, Standard & Poor's, Fitch Ratings and Moody's Investor Services have given Arlington County’s debt the highest rating: AAA/AAA/Aaa.

 

“Arlington earned this triple-triple-A rating through sound fiscal policies,” said County Manager Barbara Donnellan. “With these ratings, the County will be able to continue making critical capital investments at the lowest possible cost to residents and businesses.”

Standard & Poor’s rating is “AAA with stable outlook.” The rating reflects the “county’s excellent financial management that has been proactive in managing through all economic cycles, including the current national recession; consistent finances, which has resulted in, what we consider, very strong available reserves; and low-to-moderate overall debt.”

 

The Fitch rating is “AAA with stable outlook.”  Fitch commented that  “conservative budgeting, timely tax and fee increase, and closely monitored expenditure controls consistently produce surplus operating results leading to solid reserve levels and liquidity.”

 

According to Fitch, “Debt levels are moderate and expected to remain so given prudent planning and adherence to conservative debt policies. The county’s debt structure contains minimal exposure to variable-rate debt and does not include exposure to derivatives. Long –term liabilities are well-managed, with the county’s pension plan well-funded and required OPEB contributions budgeted in full each year.”

 

Moody’s rating is “Aaa with negative outlook.” The Moody’s Aaa rating reflects the county’s “strong long-term credit characteristics including  sizeable and affluent tax base, stable and carefully managed financial operations with sound reserves, and moderate debt position with reasonable future borrowing needs.” 

 

“Continued careful financial management and demonstrated willingness to make mid-year budgetary adjustments are expected to maintain Arlington's strong fiscal operations.”

 

“Additional financial flexibility is provided by the county's practice of appropriating an annual budget stabilization reserve and significant cash-for-capital expenditures ... Going forward, Moody's expects that management will carefully monitor revenues and adjust expenditures accordingly to maintain adequate reserve levels.”

 

Moody's also gave its ”negative outlook” to many other triple-Aaa-rated jurisdictions, including nine in Northern Virginia and the Commonwealth of Virginia. Moody’s assignment of a negative outlook to the U.S. government’s debt rating, due to well-publicized issues related to the federal debt limit, triggered its action on Arlington and other local governments.

The high ratings ensure that the County will enjoy lower interest rates for its upcoming February 2012 refundings and future sale of General Obligation Public Improvement Bonds. More information is also available on the County's website.