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Major Rating Agencies Affirm Town of Leesburg’s AAA Bond Rating
Town expects to save over $1 million in interest on refunding bonds.
Leesburg, VA (June 18, 2019) – Town of Leesburg officials received notification that all three major rating agencies (Fitch Ratings, Moody’s, and Standard & Poor’s) have provided AAA ratings with a stable outlook on the Town’s $12.4 million Series 2019 General Obligation (G.O.) Refunding Bonds. AAA with stable outlook is the highest rating a municipal government can receive.
Key drivers to the ratings included a very strong economy, very strong management, budgetary flexibility, and overall liquidity. The Series 2019 G.O. Bonds are being issued solely to achieve interest rate savings by refinancing the Series 2009 G.O. Build America Bonds. The Town expects to save over $1 million during the remaining life of the refunded bonds, or about $40,000 per year.
Town officials visited the rating agencies earlier this month before the issuance of $58 million in General Obligation Bond Anticipation Notes (Lines of Credit) in support of the Town’s six-year Capital Improvements Program for the General and Utilities Funds.
“The Town will save a substantial amount of money by refunding the Series 2009 bonds at this time. In addition, the lines of credit will provide money at a very favorable rate for capital projects for the Town's General Fund and Utilities Fund on an as-needed basis for the next five years,” said Clark Case, Leesburg’s Director of Finance and Administrative Services. “Combined, these two actions further strengthen the Town’s financial position."
Public Information Officer