James City County has kept its Triple-A bond rating from two ratings agencies, and has just received a positive outlook from another agency. Fitch Ratings and Standard and Poor’s Rating Service have maintained the county’s Triple-A bond rating – the highest rating issued – which allows the county to maintain its “rare air” status it achieved in February 2011. Less than five percent of all rated counties have a Triple-A rating. The county first received its Triple-A rating in October 2010.
Also, Moody’s Investors Service affirmed its Aa1 rating for the county’s General Obligation Bonds and revised its outlook to positive. The positive outlook represents an improvement in Moody’s rating from its previous Aa1, which had no comment relating to their outlook.
According to a press release from the county, the ratings agencies all commented on the county’s “strong financial management and the reaffirmed ratings reflect the County’s commitment to make annual lease payments, strong underlying credit characteristics, above-average wealth levels and sizable tourism sector, strong financial position, and above-average, but manageable debt burden.”
The county’s tax base is still expanding, the press release notes, despite a challenging national economic environment.
The current ratings can be a help to the county in its upcoming bond sale on Aug. 21 that will finance upcoming capital projects including some school projects and a replacement fire station. Favorable ratings can allow the county to refinance or issue general obligation bonds at a lower interest rate, saving money on interest paid and the rate of debt pay-down.
