Governor Kaine today announced that Moody’s, Fitch, and Standard & Poor’s have assigned their triple-A bond rating with a stable outlook to the Commonwealth’s General Obligation Bonds. The rating firms’ individual ratings are Aaa, AAA and AAA, respectively. The triple-A rating reflects the highest rating category by each firm.
“The triple-A ratings are a testament to Virginia’s fiscal strengths,” Governor Kaine said. “They also underscore the timely efforts we have made to address the impact on Virginia of the slowing national economy.”
According to Standard and Poor’s, “The stable outlook reflects Standard & Poor’s expectations for Virginia’s continued conservative financial management as it navigates through the economic slowdown. The Commonwealth’s strong financial management focus is evident in its early and active response to a softening of revenues in order to alleviate the projected $2.5 billion revenue deficit for the remainder of the fiscal 2008-2010 biennium.”
Moody’s added that, “The highest rating reflects the Commonwealth’s long history of proactive and conservative practices, an economy that has slowed but still outperforms the nation, the significant fiscal challenges the Commonwealth faces amid a weaker economy, and its good management of a complex debt structure.”
And finally, Fitch stated, “While the real estate downturn has affected state revenues during the current and past fiscal year, the Commonwealth continues to implement balancing measures while gradually drawing upon its reserve.”
The bond ratings were obtained in conjunction with a general obligation bond issue scheduled for sale this week. The bonds will continue to finance the remaining portions of the capital projects approved by the voters in the 2002 referendum, and certain other higher education projects throughout the Commonwealth.
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