Successful Bond Sale Held; AAA Rating Affirmed

Published on
02/05/2024
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On Jan. 24, Fairfax County completed a successful bond sale, generating $350 million to fund various project areas, after once again affirming its AAA bond rating with all three major rating agencies.

The Series 2024A bonds will fund the following project areas:

  • Schools - $205 million
  • Transportation - $68.74 million
  • Public Safety - $35.26 million
  • Parks and Parks Facilities - $28 million
  • Public Library Facilities - $5 million
  • Human Services and Community Development Facilities - $8 million

There were five bidders for the county’s bonds, and this number of bids underscores strong support for the county’s bond offerings and credit ratings. The county’s annual January general obligation bond sale remains an opportune time to sell with high demand and lower-than-average supply of municipal bonds.

Municipal bonds are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects.

 

Bond Rating Affirmed

“We followed the will of the voters and sold bonds that will improve our schools, continue to build out our multi-model transportation system, and improve public safety, parks, libraries and other critical county infrastructure,” said Board of Supervisors Chairman Jeff McKay. “I’m proud that Fairfax County continues to have triple-A bond ratings from all three ratings agencies, which since 1978 has saved Fairfax County taxpayers $1.03 billion in interest.”

All three rating agencies cited the county’s commitment to the Ten Principles of Sound Financial Management, including fully funded reserve levels. In addition, they noted the county continues to provide additional funding for its retirement plans while maintaining a structurally balanced budget.

AAA is the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.

The county has held a AAA rating from Moody’s since 1975, Standard and Poor’s since 1978 and from Fitch Ratings since 1997. As of January 2022, 13 states, 49 counties and 31 cities have a AAA bond rating from all three major rating agencies.

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