Alexandria's Credit Rating Outlook Moves to 'Stable'

Moody’s Investor Service upgraded Alexandria’s credit rating outlook to “stable” as a result of moving the U.S. government’s triple-A rating to the same outlook last month, the city announced in a Tuesday press release.

Alexandria was one of 37 local governments and four states that were upgraded to a “stable” outlook from a “negative” outlook.

The rating change, which the city called “welcome news,” is expected to have little impact on Alexandria’s financial footing.

The city recently sold $63.8 million in AAA/Aaa-rated general obligation bonds at an overall 3.265-percent true interest cost over the life of these serial bonds to Bank of America, the winning bidder.

Standard and Poor’s continues to maintain its triple-A rating for Alexandria. The city has enjoyed triple-A ratings from both S&P and Moody's since 1992. 

Moody’s placed a negative outlook on the U.S. government in 2011 and revised its outlook for other triple-A-rated municipalities to reflect their close economic links to the federal government. Alexandria and many other jurisdictions in the D.C.-area were included in that group because of their susceptibility to federal cuts, dependence on federal transfers and exposure to a capital markets disruption, according to Moody’s.

The conditions that returned the U.S. government’s rating to a “stable” outlook also reduce Alexandria’s exposure to these risks.