VIRGINIA: Henrico Water Upgrade

Citing Henrico County's improving water and sewer systems, Fitch has upgraded the county's outstanding $130 million in water and sewage revenue bonds to AAA from AA-plus.

The rating action was based on the county system's increased financial flexibility and large cash balances, decreased debt levels, and the progress made toward completion of a new water treatment plant, Fitch said in a statement.

The new water treatment plant, set to open in October next year, is expected to provide the county with sufficient water supply for at least two decades. The county currently relies on Richmond for clean water.

"Probably what held down their rating before was their dependence on the city of Richmond," said Fitch analyst Amy R. Laskey.

The county carries a triple-A general obligation bond rating from all three major rating agencies. Moody's Investors Service currently rates the revenue bonds Aa2, and Standard & Poor's rates them AA-minus. http://www.bondbuyer.com

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