HomeMy Public PortalAboutTOL NR 2019-06-17 Triple AAA Bond Ratings Affirmed
Town of Leesburg
News Release
For Immediate Release
June 18, 2019
Media Contact:
Betsy Arnett, Public Information Officer
barnett@leesburgva.gov 703-771-2734
Major Rating Agencies Affirm Town of Leesburg’s AAA Bond
Rating
Town expects to save over $1 million in interest on refunding bonds.
Leesburg, VA (June 18, 2019) – Town of Leesburg officials 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. AAA with stable outlook is the highest rating a municipal government can
receive.
Key drivers to the ratings included a very 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 over $1 million during the remaining life of the refunded bonds, or about
$40,000 per year.
Town 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.
“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,” said Clark Case, Leesburg’s Director of Finance and Administrative Services. “Combined,
these two actions further strengthen the Town’s financial position."
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