For Immediate Release: July 10, 2008
City of Alexandria Sells General Obligation Bonds for Public Facilities, Infrastructure and Affordable Housing
Top AAA/Aaa Bond Ratings Reaffirmed
This week, the City of Alexandria competitively sold $58 million in AAA/Aaa rated general obligation tax exempt bonds at a favorable 3.99% interest rate to a syndicate led by Robert W. Baird & Company. There were seven syndicates who bid on the City’s tax exempt bonds. These bonds will be used to finance planned City and School facility and infrastructure capital projects. Also, at the same time, the City competitively sold $5 million in AAA/Aaa rated general obligation taxable bonds at a favorable 5.36% interest rate. A syndicate led by Stifel Nicolaus & Company submitted the lowest bid of the six submitted bids. The taxable bonds will be used for affordable housing purposes.
In reaffirming the City’s Aaa rating, Moody’s Investors Service stated that the granting of the highest quality bond rating to the City “reflects the City’s diverse tax base, above-average wealth levels, economic stability derived from proximity to the nation’s capital, sound financial operations, conservative budgeting and strong debt position.” Moody’s also cited the City’s debt issuance guidelines, and financial management practices, as credit strengths.
Standard & Poor’s, in reaffirming its AAA rating of the City’s bonds, cited Alexandria’s “deep, diverse and strongly performing local economy” as well as the City’s “moderate-to-low overall debt burden” as positive rating factors. In addition to the bond rating, Standard & Poor’s assessed the City’s financial management practices as “strong,” which is the highest rating that is given in that category.
“It is heartening to receive these top AAA/Aaa bond ratings, along with such positive written reports from the bond rating agencies,” said Mayor William Euille. “These independent analyses, which in effect are “report cards” on City policies and performance, reflect well on prior and current City Councils and City management who have over time collectively helped establish and improve upon the fundamentals of sound financial and economic policies.”