Moody’s Investors Service has assigned a AAA rating to the City of Alexandria’s (VA) $63.8 million General Obligation Capital Improvement Bonds, Series 2013. Concurrently, Moody’s has affirmed the Aaa rating on $442.4 million in outstanding parity debt. The outlook remains negative. The bonds are secured by the city’s unlimited general obligation tax pledge. Proceeds from the Series 2013 bonds will be used to fund various capital projects, including school-related improvements.
SUMMARY RATING RATIONALE:
The Aaa rating reflects the city’s strong and vibrant tax base, aboveaverage socioeconomic profile, healthy financial position supported by conservative budgeting and favorable debt profile.
The negative outlook reflects the city’s indirect linkages to the weakened credit profile of the U.S. government.
-Large and wealthy tax base with proximity to Washington, D.C.
-Conservatively managed budget with healthy reserves
Some of the challenges include:
-Growing school enrollment creating demand for additional facilities
-Ambitious capital program and debt plans to support economic development initiatives
-Exposure to regional federal budget cuts