Exemplary reviews will allow the county to secure favorable interest rates for upcoming bond sale
Henrico’s AAA bond ratings – the strongest possible endorsement of the county’s financial management and creditworthiness – have been reaffirmed ahead of a planned issuance of bonds to support reinvestment in schools and other facilities.
Henrico has long been recognized as “triple AAA,” consistently earning AAA bond ratings from three major rating agencies: S&P Global Ratings, Moody’s Investors Service and Fitch Ratings.
Now, Henrico is also rated AAA by a fourth agency, Kroll Bond Rating Agency. The company is newly recognized by the Federal Reserve to review municipalities for their credit risk. Henrico is one of three counties in the nation to reach the elite status of “quad-AAA” for general-obligation bonds. The others are Harris County, Texas, and Chesterfield County.
“The rigorous, independent assessments that place Henrico in the elite company of ‘quadruple-AAA’ counties underscore our county’s understanding that enduring fiscal excellence takes years to obtain,” said Board of Supervisors Chair Dan J. Schmitt, of the Brookland District. “For decades, Henrico has benefited from outstanding management and fiscal prudence – extending from our elected officials to our executive leadership and frontline staff. Our steadfast commitment to these practices enables Henrico to offer the best services, facilities and quality of life as well as the best value for our residents, businesses and taxpayers.”
Henrico officials announced the county’s “quad-AAA” status today during a news conference at Richmond International Airport. Chesterfield officials joined the celebration to highlight how the two localities’ financial management and stewardship enhances the region for residents and businesses.
Henrico plans to issue $88 million in general-obligation bonds in September to support a package of capital improvement projects. They include new buildings for Quioccasin Middle School, Jackson Davis Elementary School and Longan Elementary School; a renovation of Johnson Elementary School; the new Environmental Education Center Living Building at Wilton Farm; a new Animal Adoption Center; a third phase of improvements to Tuckahoe Creek Park; and drainage improvements countywide. Separately, the Henrico Economic Development Authority plans to issue $42.5 million in revenue bonds to support other capital projects.
In preparation for the sales, county staff recently made presentations to the four rating agencies. Analysts with Kroll visited Henrico and toured various facilities, including the Henrico Sports & Events Center, Fairfield Area Library, Taylor Farm Park and White Oak Technology Park.
S&P Global, Moody’s, Fitch and Kroll assigned their ratings of Henrico with a “stable” outlook.
In a summary of its findings, Kroll noted the strength of Henrico’s financial position and the local economy. It cited the county’s “robust financial policies and procedures that have enabled continued growth in the unassigned fund balance and strong levels of liquidity, while still allowing for taxpayer rebates; a relatively low fixed cost burden; and a diverse economic base with favorable socioeconomic characteristics.”
Henrico has received AAA ratings from S&P Global and Moody’s since 1977. The county became “triple AAA” in 1998, when Fitch joined the other major rating agencies and assigned an AAA rating to Henrico. Now, it’s “quad-AAA” with Kroll providing its assessment of the county’s creditworthiness.