Chesterfield County in Virginia has become the first locality in the state to achieve a Quad-AAA bond rating. This development follows nearly three decades of maintaining a AAA bond rating from Moody’s, Fitch Ratings, and Standard & Poor’s (S&P), making Chesterfield part of the 1% of localities nationwide with such ratings.
This year, Chesterfield engaged Kroll Bond Rating Agency (KBRA) for an additional review of its financial position and policies. KBRA awarded Chesterfield’s general obligation bonds a AAA rating, positioning it as one of only three localities in the United States with this distinction.
Jim Ingle, chair of the Board of Supervisors for Bermuda District, emphasized the importance of independent assessments: “Thorough, independent assessment of the local government’s financial management practices is necessary as stewards of our taxpayers’ resources.” He expressed pride that another agency affirmed Chesterfield’s financial track record.
KBRA noted several factors contributing to its rating decision: “manageable debt,” “sizable, growing tax base,” and “rapidly expanding economy.” The agency praised Chesterfield’s “robust financial policies” and comprehensive budget processes.
Moody’s, Fitch Ratings, and S&P have also reaffirmed Chesterfield’s AAA rating for the 29th consecutive year. These ratings are comparable to individual credit scores; higher ratings reduce borrowing costs.
As part of its capital financing plan, Chesterfield plans to issue up to $75 million in general obligation bonds for school capital improvement projects. This issuance is part of a $540 million authorization approved by voters in November 2022. Additionally, up to $60 million in refunding bonds may be issued to refinance existing bonds under favorable market conditions.
County Administrator Dr. Joe Casey highlighted the benefits: “There is an obvious, tangible benefit from being able to issue bonds at the lowest interest rates. Maintaining Triple-AAA status and achieving Quad-AAA status shows Chesterfield’s bonds are seen as one of the safest investments available.”
The savings from these financial strategies can be redirected toward other community priorities as Chesterfield continues its growth trajectory.
