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 ratings 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.”

“The County Board and staff have once again demonstrated their top-notch commitment to preserving our fiscal reputation—this couldn’t be accomplished without sound fiscal policies,” said Board of Supervisors Chair Phyllis J. Randall. “Maintaining our AAA bond rating from the three major ratings agencies continues to provide Loudoun with great flexibility to meet the county’s capital and operational needs at the lowest possible cost.”

Fitch Ratings noted the county’s:

• Broad and diverse economy, strong employment, educational attainment and household income levels.
• Strong financial performance and resilience, resulting from a stable unrestricted general fund balance maintaining the county’s ability to respond to fiscal stresses and allowing for strong budgetary flexibility.
  

Moody’s noted the county’s:

• Large and dynamic tax base with income levels more than double the national median.
• Financial position and reserves, supported by the county’s policies, proactive management and solid leverage position.

S&P Global noted the county’s:

• Historically strong financial performance, with available reserves exceeding 30% of expenditures, resulting from conservative revenue and expenditure assumptions and strong adherence to fiscal policies.
• Robust economic profile, supported by proactive management policies and long-term planning.
• Rapid debt amortization and low debt compared with market value, supporting its sizable Capital Improvement Program.
  

“The Board of Supervisors’ strict adherence to sound fiscal policies continues to pay dividends through achieving the best possible credit ratings, directly leading to reduced costs for taxpayers on capital projects,” said Dulles District Supervisor Matt Letourneau, Chairman of the Board’s Finance, Government Operations and Economic Development Committee. “I appreciate the year-round efforts of County staff to work with the Board and in particular the Finance Committee to ensure Loudoun’s strong financial footing and smart debt management.” 

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.