Newsroom
For Immediate Release
Monday, June 02, 2008
Contact: Mary Curtius 703-228-7943 (voice) 703-228-4611(TTY)
Arlington’s Triple-Aaa Bond Rating Reaffirmed
Agencies: outstanding financial management, solid reserve levels, moderate debt burden
ARLINGTON, Va. – For the eighth consecutive year, Standard & Poor's, Fitch Ratings, and Moody's Investor Services all have given Arlington County’s debt the highest rating: AAA/AAA/Aaa. Arlington is one of only 22 counties in the United States to carry the coveted triple-A bond rating from all three rating agencies.
Each of the agencies noted the County’s outstanding financial management, its solid reserve levels and controlled expenditure growth. Each also noted significant steps the County took this year to reduce its total liability for post-retirement benefits by increasing employee premiums and making other long-term changes to existing health care plans.
As a result, Fitch Ratings predicted that the County's “tax base growth will be sustained despite economic softening and potential vulnerability from housing market declines." Arlington's “prudent fiscal management," the agency said, "is expected to maintain strong reserve levels in light of broader economic pressures.”
The high ratings ensure that the County will enjoy lower interest rates for its planned sale on June 3, 2008, of $111.185 million in General Obligation Public Improvement Bonds. Bond proceeds will finance:
- Arlington Public Schools building projects
- Expansion, upgrading of the Water Pollution Control Plant
- Improvements to Long Bridge Park
- Completion of Neighborhood Conservation Projects
- Street and highway construction
- Other important County projects
“Triple-A ratings from all three agencies is a powerful affirmation that the County's fiscal policies are on the right track,” said Deputy County Manager Barbara Donnellan. “This vote of confidence reflects the County Board’s leadership in adopting comprehensive financial and debt policies, fiscally sustainable budgets, and full funding of our employee pension and health care plans.“
What the ratings agencies said:
- Standard & Poor’s said: “Arlington County’s financial position is strong, underpinned by strong financial management, budgeting, and capital planning processes. The County has been very successful in integrating debt, operating, and community needs while maintaining a long-term focus. Cohesive long-term planning is evident in the County’s financial and capital planning and reserves and contingencies are part of the financial profile. The County has been successful in building reserves in recent years, which has positioned it well to withstand the current national economic slowdown.”
- Moody’s noted that the County’s financial stability is enhanced by the newly adopted reserve policy and that the rating “reflects the County’s long-term credit characteristics including strong financial operation guided by institutionalized management practices, a diverse and affluent economic base adjacent to the nation’s capital, and a moderate debt position with above average pay out.”
- Fitch Ratings noted: “Superior wealth levels and a breadth of employment opportunities locally and regionally underscore Arlington County’s strong economy and solid tax base; outstanding financial management has resulted in solid reserve levels and controlled expenditure growth; and the debt burden is moderate, with rapid amortization of principal, and the county continues to adhere to and expand on conservative financial and debt policies.”
More information is available on the County's web site.
Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency's highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America's preeminent places to live, visit and do business.