Spotsylvania County recently received an upgrade to the highest credit rating possible by two rating services.
Standard & Poor’s Global recently announced the county’s AAA rating on general obligation bonds, according to a news release from Spotsylvania. The county’s prior rating by S&P was AA+, issued in 2010.
The county also has received a AAA rating from Fitch Ratings and an Aa1 rating by Moody’s Investor Service. The Moody’s rating is the second highest the company issues.
The higher ratings allow localities to borrow money at lower interest rates. Stafford County has received AAA ratings from all three services.
According to S&P’s report, Spotsylvania’s AAA rating is based on several positive factors, including its location near Washington, D.C., along with its growth and budget surplus, which the county has produced the past five years.
The report notes that “ongoing developments will help expand the county’s already large and diverse tax base and provide additional revenue-raising flexibility, which should help the county maintain its long track record of positive financial operations and very strong reserve levels. The stable outlook reflects S&P Global Ratings’ opinion of the county’s strong performance and very strong management conditions.”
Paul Trampe, chairman of the Spotsylvania Board of Supervisors, lauded the rating.
“It’s gratifying to have our efforts to enforce fiscal discipline while providing outstanding services to our taxpayers recognized and rewarded,” he said in the release.
Fellow Supervisor Gary Skinner said the county has earned the rating and will “continue working towards earning the third AAA rating from Moody’s, so that Spotsylvania has the highest bond rating from all three independent credit reporting agencies.”