Virginia Beach plans to competitively sell $52.5 million of general obligation public improvement refunding bonds Tuesday.
The bonds are secured by the city’s full faith and credit, and the proceeds will be used to refund outstanding Series 1998 GOs in their entirety on Aug. 1, 2008.
Government Finance Associates Inc. and ARD Government Finance Group are financial advisers. Troutman Sanders LLP is bond counsel.
Standard & Poor’s assigns the debt its AAA rating and affirmed the city’s long-term rating at AAA. Fitch Ratings gives the deal and the city a AA-plus rating with a stable outlook.
The rating on the Series 2008A bonds reflects a strong local economy that continues to exhibit significant tax base growth and has proven to be highly stable through all business cycles. It also reflects a comprehensive economic development strategy that has been enhancing Virginia Beach’s position as a tourism and convention destination, while simultaneously diversifying its economic base. A moderate debt burden, along with a multiyear capital improvement plan, appears manageable, according to Standard & Poor’s.
Virginia Beach, which is located along the southeastern coast of Virginia in the Hampton Roads region, is the state’s largest city based on population. Its 38 miles of shoreline makes it a “prime tourist destination,” Standard & Poor’s noted.
The stable outlook reflects the city’s strong local economy and ongoing healthy tax base growth with the expectation that both will continue to grow, analysts said. Virginia Beach’s diverse mix of revenues, long history of solid financial results, and sound reserve levels lend stability to the rating, according to Standard & Poor’s.