N E W S R E L E A S E
Aug. 20, 2012
FOR IMMEDIATE RELEASE
Sue Mellen, Assistant Manager, Financial and Management Services
James City County maintains positive bond rating
James City County has retained a Triple-A bond rating on previously issued general obligation debt from both Fitch Ratings and Standard and Poor’s (S&P) Rating Service. In addition, Moody’s Investors Service affirmed its Aa1 rating for General Obligation Bonds and revised its outlook to positive. The positive outlook represents an improvement in Moody’s rating from its previous Aa1 which had no comment relating to their outlook. The ratings are advantageous in advance of the Aug. 21 bond sale that will finance upcoming capital projects including various school projects and a replacement fire station.
The Triple-A rating is the highest rating issued by Fitch and S&P and maintains the County’s “rare air” status achieved in February 2011.
All of the rating agencies recognized and commented upon the County’s strong financial management and the reaffirmed ratings reflect the County’s commitment to make annual lease payments, strong underlying credit characteristics, above-average wealth levels and sizable tourism sector, strong financial position, and above-average, but manageable debt burden. The County’s tax base continues to expand despite challenges presented by the current national environment.
Favorable bond ratings can result in the County’s ability to refinance or issue general obligation bonds at a lower interest rate, saving money on interest paid and the rate of debt pay-down.