Standard & Poor's Ratings Services assigned its AAA rating to Winchester, Va.'s general obligation public improvement bonds series 2013 and raised the city's outstanding GO rating to AAA from AA-plus based on its recently released local GO criteria.
The outlook is stable.
A pledge of the city's full-faith-credit-and-resources and an agreement to levy ad valorem property taxes without limitation as to rate or amount secure these bonds.
"The rating reflects our assessment of the city's strong economy and budgetary performance; very strong budgetary flexibility, management, and liquidity; and weak debt and contingent liabilities position, driven mostly by the city's high net direct debt as a percentage of revenues," said Standard & Poor's credit analyst Danielle Leonardis.
"The stable outlook reflects our view of the city's continued consistent strong financial performance and underlying economy supported by very strong management practices," Leonardis added. "We do not anticipate changing the rating during our two-year outlook horizon due to our expectation that the city will maintain current reserve levels while managing future economic development given its role as the commercial and retail hub for the western Virginia area."
