Bond agencies reaffirm Loudoun’s triple-A ratings

The nation’s top bond rating agencies have again affirmed Loudoun County’s triple-A ratings on its general obligation bonds, noting the county’s strong financial performance, a robust economic profile with a diverse tax base and strong management. Loudoun County has held the Aaa rating from Moody’s since 2004, and AAA from Fitch Ratings and S&P Global since 2005. The three rating agencies also affirmed Loudoun’s AA+ and Aa1 ratings on the upcoming sale of public facility revenue bonds through the Economic Development Authority, as well as its outstanding appropriation-backed bonds.  The rating outlook for all three rating agencies is “stable.”

Fitch Ratings noted the county’s:

• Financial resilience driven by the county’s revenue and expenditure control, budgetary flexibility and strong fund balances and reserves
• Management of its overall debt with relatively low direct debt and pension obligations
• Overall strength in demographic and economic level indicators, such as unemployment rates, educational attainment and median household income

Moody’s noted the county’s:

• Strong and diverse local economy and strong resident income levels
• Steady tax base growth
• Strong and stable financial position and reserves, supported by the county’s policies, conservative budgeting, proactive management, and solid leverage position

S&P Global noted the county’s:

• Robust economic profile, supported by proactive management policies and practices as well as long-term planning
• Track record of positive financial performance, with available reserves of nearly 24% of revenues, resulting from conservative revenue and expenditure assumptions and strong adherence to fiscal policies
• Above-average debt amortization and substantial pay-go capital program, supporting the county’s sizable Capital Improvement Program

“Loudoun County’s strong financial management, sound fiscal policies and low debt profile continue to be recognized with the best possible credit ratings, directly leading to reduced costs for taxpayers on capital projects,” said Algonkian District Supervisor Juli Briskman, Chair of the Board’s Finance, Government Operations and Economic Development Committee.

A triple-A rating is important to the county government and taxpayers because it helps the county continue to get the best possible interest rates to finance capital projects, saving millions of dollars. The reaffirmation comes in advance of the county’s upcoming sale of general obligation bonds and

public facility revenue bonds through the Economic Development Authority, the proceeds of which
will be used for school and general government projects.

More information on Loudoun County finances and its triple-A status is online at loudoun.gov/BondRatings.