PRINCE WILLIAM COUNTY, VIRGINIA . . . On Feb. 14, 2012, Prince William County executed a $51.6 million refinancing bond sale that will result in $5.17 million of savings for the County. This refunding sale was completed for the purpose of applying the currently low interest rates to secure cheaper refinancing of existing County debt. As part of this sale, the County’s triple-A rating was reaffirmed by all three major rating agencies – Fitch, Moody’s and Standard & Poor’s (S&P). When this refinancing savings is combined with other recent refinancing savings, Prince William County will save $19.3 million and the schools will save $11.7 million on refinancing sales completed since 2010. This means that the combined County and schools refinancings since January 2010 will generate $31 million in savings over the next 18 years.
“This reaffirmation of triple, triple-A ratings is a testament to the hard work of this Board, this community and the staff,” said Corey A. Stewart, Chairman, Prince William Board of County Supervisors. “While other localities dipped into their reserves, Prince William County reduced the size of government and focused on the core essentials of government. Because of this, we are now a symbol of stability, growth and prosperity.”
Credit ratings are tied strongly not only to the financial management of a local government, but also to the economic climate. Fitch listed several reasons for reaffirming the County’s rating, including the County’s prudent fiscal management; dynamic and strong local economy anchored by federal government presence; below average debt level; and sound reserve levels. Moody’s rationale for reaffirming the County’s Aaa rating includes the “County’s sizable, wealthy tax base; strong financial flexibility supported by effective management and ample reserve levels; and manageable debt burden.” And S&P listed the following reasons to reaffirm the County’s AAA rating: the County has a deep and diverse economy; a sizable and diverse property tax base; strong financial management, resulting in consistent operations and strong reserves throughout the recession; and low-to-moderate debt.
Prince William County is only one of 72 (out of 22,525) or 0.3 percent of local governments that has achieved triple, triple-A ratings.
