Financial Agencies Affirm Leesburg's AAA Bond Rating

LEESBURG, VA—Here's some news that bodes well for the financial health of Leesburg. In short, town officials have 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, according to a release. AAA with stable outlook is the highest rating a municipal government can receive.

Said Clark Case, Leesburg's director of Finance and Administrative Services in a statement: "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. Combined, these two actions further strengthen the Town's financial position."

Keys were a 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 more than $1 million during the remaining life of the refunded bonds, or about $40,000 per year.

Leesburg 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.