While the nation’s credit-worthiness remains in jeopardy as the debt ceiling debate rages on, the City of Charlottesville has proven its on solid ground financially.
The City of Charlottesville received a AAA rating – the highest available – from both S&P Global Ratings and Moody’s Investor Services.
This month, both rating agencies conducted a thorough assessment of the city – looking at its ability to repay its debt in full and on time.
Bond ratings are attractive to investors because it is a strong indicator of low risk of default which results in the city being able to borrow at the lowest possible interest rate.
Both rating agencies cited several key factors in assessing the city’s AAA rating:
- A strong and growing economy anchored by a stable institutional presence
- Strong and comprehensive financial policies and practices
- Sound budgetary performance with adequate financial flexibility
- Manageable debt burden
“The city is honored to have once again received the highest bond ratings possible by both Moody’s and S&P,” said Interim City Manager Michael Rogers. “The ratings reflect the hard work and commitment of staff and City Council to make sure the City’s financial outlook remains strong and stable.”
Moody’s has rated Charlottesville AAA since 1973, and S&P Global has rated the city AAA since 1964.