Fairfax County completed the sale Tuesday of $238 million of general obligation bonds, while Moody’s Investors Service affirmed its Aaa rating for the county’s $2 billion of outstanding parity debt.
The competitive sale concluded when Banc of America Securities LLC purchased the bonds at a true interest cost of 3.77%. The bonds will mature from 2009 to 2028.
In its report assigning its top rating to the bonds, Moody’s said it expects Fairfax to weather the current housing decline and continue its traditionally strong financial management.
The rating agency cited the county’s advantageous location in the Washington, D.C., metropolitan area and its $241 billion tax base.
“The broad economic foundation of Fairfax County will continue to provide considerable insulation against general economic uncertainty and industry-specific downturns,” it said.
Analysts also said that Fairfax enjoys a low debt burden, which should provide the county with the room it needs to accommodate future capital projects. The county only has an overall debt burden of 1.1%, with about 68% of that debt due to be retired within the next 10 years.
Fairfax County also enjoys AAA ratings from Standard & Poor’s and Fitch Ratings.
