Budget and Management
July 24, 2020
CHESTERFIELD COUNTY, VA — Recently, the nation’s top three ratings agencies reaffirmed Chesterfield County’s triple-AAA bond rating, solidifying Chesterfield’s position among a small group of peers able to demonstrate exceptional fiscal management. Only about 1 percent of counties nationwide currently hold the AAA credit rating from each of three agencies.
The county has earned a triple-AAA rating for the past 23 years, resulting from its robust and diverse economy and record of fiscal conservatism and strong financial management. The ratings come from Standard & Poor’s, Moody’s, and Fitch Ratings.
“Maintaining our long-standing triple AAA bond rating is always important, but even more so in today’s challenges,” said Dr. Joe Casey, county administrator. “This recent review gives the community comfort that our fiscal health and budget plans remain strong despite some of the rough economic waters we have encountered.”
The triple-AAA rating ensures Chesterfield County can borrow funds for the community’s capital and infrastructure needs at the lowest available interest rates. The rating review process also provides residents and businesses with a thorough, independent assessment of the county’s management and financial practices.
The county’s status was reviewed in preparation for a bond sale earlier this month.
The county has a bright outlook, according to the ratings agencies.
According to Fitch: “Strong financial management and planning have resulted in consistently positive financial operations and ample reserve levels. Fitch expects the county will continue to maintain solid operations and substantial gap-closing ability throughout economic cycles.”
Moody’s says, “The stable outlook reflects the likelihood that reserves and liquidity will remain stable due to management’s conservative budget assumptions and formal fiscal policies.”
According to Standard & Poor’s: “The rating reflects our view of the county’s consistently strong financial performance and flexibility to date. The county’s use of conservative budgeting assumptions has typically led to positive operating results, which have allowed the county to maintain very strong general fund reserves.”