Based on continued progress and success, Hanover County is now part of an exclusive and elite group.
During Wednesday’s regular meeting of the Board of Supervisors, County Administrator Cecil R. “Rhu” Harris Jr. said that the county had received a “AAA” municipal bond rating from Standard and Poor, http://www.standardandpoors.com.
“We’re one of only a very few counties in the United States to have a AAA bond rating,” Harris said this morning.
Having received the AAA bond rating from Fitch Ratings, http://www.fitchratings.com, in 2006, Harris said the county now has two of the three significant designations. The third, Moody’s Investors Service, rated the county Aa1, which is one rating grade below AAA.
With 3,100 counties across the United States, Hanover joins with only 39 others in such a distinction. Only four Virginia counties are included, with Hanover being the smallest in population.
“We’re in a unique class of strong managed counties,” Harris added.
As far as the taxpayers are concerned, he said this means that “when the county issues debt, we can get the best possible interest rate.”
“In this kind of economic climate,” Harris said, “this is some good news about the economics [of Hanover County].”
While Standard and Poor upgraded the county to the AAA status, Fitch reaffirmed its bond rating.
A press release from Harris’ office said “The bond rating will be applied to $21 million in general obligation bonds that are scheduled to sell competitively during the week of Feb. 2. These bonds will finance school and county projects recently completed or under construction from the 2005 bond referendum.
Hanover County will also refinance about $15. 9 million in existing public improvement bonds at a lower rate.”
According to the release, “S&P based its upgrade on Hanover’s ‘historically strong financial position, aided by excellent and well adhered to fiscal policies. Continued economic development in a resilient economy further supports the upgrade. The outlook is stable.’ “
John E. Gordon Jr., the new chairman of the Board of Supervisors, who represents the South Anna District, said, “This is great news for Hanover taxpayers. It means that Hanover County will be able to borrow money at lower interest rates as we continue to finance needed capital improvement projects.”
“Hanover County has maintained a sound financial performance and benefited from sophisticated financial planning,” Standard and Poor said. It referred to the county’s financial management practices as “strong, well embedded and likely sustainable.”
Standard and Poor also said that “the stable outlook reflects the local economy’s growth and the expanding role it plays within the already diverse regional economy. Economic development shold continue, strengthening the economy and the employment and property tax bases while allowing the county to maintain its rural nature. The county’s excellent fiscal policies and adherence to them and the overall health of the county’s financial position provide rating stability.”
The release from Harris’ office said that “Fitch based its AAA rating on Hanover’s ‘sustained economic growth and diversification coupled with the maintenance of a sound financial position despite declines in state support. The rating is further supported by extensive institutionalized management and planning practices, low debt and unemployment levels, consistently positive financial results, high income levels and the excellent growth prospects of the entire Richmond region.’ “
Harris concluded by saying “The Board of Supervisors and the staff have worked very hard to give Hanover County citizens the highest quality of financial management and we are glad that S&P and Fitch have chosen to recognize these accomplishments. These AAA bond ratings will produce significant benefits for Hanover County for a long period of time.”
Reader Comments
This is exciting to me as a Hanover resident. Great job and I hope Hanover continues to control home building.
Anthony of Mechanicsville
Jan. 30, 2009 at 01:21 PM
