NORFOLK, Va. (WAVY) — S&P Global announced on Wednesday that they have affirmed the City of Norfolk’s “AAA” general obligation credit rating, which is the highest rating that they offer.
The city is expected to sell its General Obligation Bonds in mid-June which will reduce future payments on Norfolk’s expensive unfunded accrued liability.
S&P said that several factors contributed to Norfolk’s “AAA” rating, including the city’s growing economy and substantial large-scale developments recently completed and underway. Influences from the military, shipbuilding and educational centers also played a major role.
According to S&P, Norfolk has “exceptional access to external liquidity, if necessary, highlighting their ability to access the capital markets, strong management of the City’s cash and investments, and the foresight to expand the scope of the City’s line of credit to include funding of operating expenses caused by a significant emergency event.”
This “AAA” rating will also allow the city to continue to borrow at the lowest interest cost.