Updated at 8:40 a.m. with details from the city's announcement, including that Alexandria will issue $190.7 million in bonds later this year and a statement from Mayor Alyia Gaskins.
ALEXANDRIA, Va. — Alexandria has again received the highest bond ratings available from both Moody's and S&P Global, City Manager James Parajon told City Council on Tuesday, results the city learned earlier that day.
The city's ratings are 'AAA' from S&P and 'Aaa' from Moody's, the top of each agency's scale. The city says it is the 35th consecutive year Alexandria has received the highest marks, which it has held since 1992.
The ratings determine how cheaply Alexandria can borrow for capital projects, from school buildings to infrastructure. The better the rating, Parajon said, the lower the cost to borrow, which flows through to taxpayers.
"Both Moody's and Standard & Poor's have provided the city with the nation's highest bond rating," Parajon said. "The highest bond rating you can get, the City of Alexandria has received that."
S&P's credit highlights, which Parajon read from, cite an expanding local economy with stronger economic metrics than national averages, and conservative, well-embedded management practices supporting a strong reserve position and positive revenue trends. The agency rates the city above the sovereign, meaning Alexandria scores higher than the U.S. government and has for years, with better credit characteristics under stress scenarios.
Not a formality
Mayor Alyia Gaskins told colleagues the ratings should not be taken for granted.
"I know we've had our AAA ratings for quite a while, but nothing is guaranteed," she said.
Gaskins and staff traveled to New York to meet the agencies and fielded more than an hour and a half of questions, she said. The analysts asked about the city's fiscal policies and whether they have changed, how the city catches problems as they arise, and about its management and leadership.
She said the questions reflect a harder environment: economic uncertainty, a region long dependent on the federal government, and resilience challenges ranging from cybersecurity to flooding.
Speaking at Visit Alexandria's annual meeting last week, Gaskins said she opened each of those presentations with a line borrowed from the tourism bureau's Unlock Your Story campaign: our city may be historic, but we are not static.
The agencies also watch, she said. "They're watching our meetings, they're watching what we do to see how we lead and how we show up." That will continue into the coming budget, she said.
Parajon described the review as thorough and difficult, made harder by conditions in the U.S. and global economies, and said Virginia has characteristics that put its localities at a disadvantage in ratings. He did not elaborate.
Both agencies, he said, recognized the city's stable government and its adherence to fiscal policies that council sets and follows.
Parajon credited Finance Director Kevin Greenlief along with Arthur Wicks and Stephanie Landrum of the Alexandria Economic Development Partnership, and thanked Gaskins for joining the meetings.
Later this year the city will issue $190.7 million in tax-exempt general obligation bonds for capital projects, including the renovation of George Mason Elementary School, the next phase of the Waterfront Improvement Project and initial work to renovate City Hall. Last year, after the same affirmations, the city issued $105 million for the same three projects.
"While our national economy deals with uncertainty and inflationary pressures, Alexandria's top credit ratings demonstrate that with sound fiscal policies and a focus on growth and innovation, our city is well positioned to continue to thrive," Gaskins said in a statement.
The ratings come as Alexandria prepares its fiscal 2028 budget, with a council retreat set for Nov. 7 and budget guidance Nov. 10.
