City of Richmond Maintains Agency Bond Ratings
Stable Financial Footing Opens Doors for Favorable Rates and Continued Civic Investment
Richmond, VA — The City of Richmond is pleased to announce that it has maintained general obligation bond ratings across the country’s three major, independent bond rating agencies. Fitch, S&P Global, and Moody’s have reaffirmed the City's AAA, AA+, and Aa1 ratings, respectively, indicating a stable financial footing reflective of strong and disciplined financial management. Excerpts from each rating agency’s rationale and links to their respective releases are below.
“We are stewards of this government on behalf of its residents,” said Mayor Danny Avula , “and sound financial management is chief among our responsibilities. These ratings are an important affirmation that, despite challenges, we are focused on building a capable and resilient financial management infrastructure that will help us to reach our collective goals today and into the future."
Importantly, the bond ratings position Richmond to access capital markets at favorable interest rates, opening doors to additional investment in infrastructure, public services, and long-term community development.
Fitch Ratings: AAA
“The capital of the commonwealth of Virginia, Richmond is at the hub of a growing metropolitan area and is a regional center for employment and cultural amenities. The economy, which has traditionally been dominated by the government sector, has gained strength from education and health services, anchored by Virginia Commonwealth University (VCU).”
S&P Global: AA+
“The city's budgetary tools are robust and are likely to support recurring revenue and expenditure balance. Budgetary assumptions are realistic and well-grounded and are based on annually updated historical trend analysis. Richmond uses multiyear forecasting for both revenue and expenditures and has an extensive five-year CIP, with all funding sources identified, which we believe propels budgetary decisions.”
Moody’s: Aa1
“The city's financial position will remain healthy, supported by prudent fiscal practices and consistently positive general fund results. We anticipate the trend of structurally balanced operations to continue with solid revenue growth.”
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In their analyses, the reporting agencies point to decisions made by the City to improve clarity, increase revenues, and budget strategically to ensure strong positioning. This includes the freezing of real estate assessments to align reassessment and budgetary cycles, new commercial and industrial development, and the use of multiyear forecasting to inform budgetary decisions, to name a few.
“These ratings are a testament to the very deliberate and difficult work of reevaluating and reforming our financial practices,” said Chief Administrative Officer Odie Donald II . “But, as they say, 'the reward for good work is more work,’ and I welcome the work ahead to further refine our financial best practices to better serve Richmonders.”
