Prince William County Receives Reaffirmation of AAA Bond Rating from All Three Major Credit Rating Agencies

Prince William County is pleased to announce that all three credit ratings agencies – Moody’s, Fitch Ratings and S&P Global – recently reaffirmed the county’s AAA/Aaa credit rating. Prince William County is one of approximately 53 counties across the country and 12 in Virginia to have achieved the highest credit rating by all three agencies.

The AAA/Aaa ratings help to ensure that the county can borrow money at lower interest rates, reducing the cost of financing for infrastructure and other capital projects. It also makes it easier for the county to access bond markets, as well as makes the county more attractive to businesses, as it signals stable financial conditions and the county’s long-term financial health.

Prince William County has been a AAA/AAa jurisdictions since 2011. According to the rating agencies, the county’s growing and diversifying tax base was an important factor in their decisions to reaffirm the designation. The relative affordability and well-educated workforce support favorable economic and demographic growth trends. Additionally, the county’s unemployment rate is below both the state and national levels. During the pandemic, the county maintained its financial health and remained resilient, responding, and adapting as necessary and minimizing its impact. Post pandemic, the county has refocused, making investments in the community, economic development and infrastructure.

All three ratings agencies also noted the important role played by the Principles of Sound Financial Management that has served to guide Board’s financial decisions since 1988. The principles underscore the importance of maintaining sound reserve levels, a thoughtful planning and budgeting process, and taking measures to ensure resilience. These policies have served to provide stability and continuity over the years, even during challenging economic conditions. In the growing discussion about Environmental, Social and Governance (ESG), all three agencies noted that issues are minimal, and the county is believed to have capacity to respond to climate or other events.

Specifically, S&P Global stated, “Prince William County's rating reflects increasing economic strength likely to lead to material revenue growth, a longstanding commitment to financial balance underpinned by robust formal policies and practices, and consistent financial performance.”

Moody’s said, “Prince William County’s credit profile reflects a dynamic economy and growing tax base in Northern Virginia with strong income and wealth levels.”

Fitch stated, “Prince William County's population in 2022 was of sufficient size and the economy was sufficiently diversified… to minimize risks associated with small population size and economic concentration.”

“This is an important recognition of the county’s strong financial health and economic stability,” said Board of County Supervisors Chair At-Large Deshundra Jefferson. “It’s a team effort to successfully balance the needs of the community with maintaining an environment that is attractive for economic development, all while maintaining the highest levels of financial responsibility and an excellent quality of life for our residents.”

County Executive Chris Shorter also noted the county’s commitment to maintaining sound financial practices.

“This reflects the continuous efforts of the Board and all the county staff who focus on prudent and responsible administration of public resources,” said Shorter. “Prince William County is a growing, dynamic community, which continues to attract a high-quality workforce and significant capital investment. I really appreciate all of the work that has gone into the long-term planning and governance that have helped to maintain fiscal discipline over the years, resulting in this prestigious distinction as a AAA/Aaa jurisdiction.”