City of Richmond receives credit rating upgrade from top-three rating agency

With upgrade from Moody’s Investors Services, city’s credit ratings now highest in half century

Moody’s Investors Services has upgraded the city’s outstanding general obligation debt rating to Aa1, the next-to-highest rating possible.

This is the first general obligation upgrade received by the city since 2014. As a result of the most recent upgrade, the city’s ratings from all three of the major rating agencies fall only one notch below the highest possible rating.

With Moody’s upgrade of Richmond to Aa1, the city’s credit is in its highest standing in half a century.

“I am pleased that Wall Street continues to recognize the progress our city has made in recent years,” said Mayor Stoney. “We got our financial house in order, and it’s paying off.”

The upgrade follows Moody’s July 2018 promotion of the city’s outlook from “stable” to “positive.” Moody’s cited Richmond’s continued growth, diversified tax base, enhanced reserves and conservative budget assumptions as its reasons for the upgrade.

A city’s credit rating determines how much the locality can borrow to build capital projects such as schools, as well as the interest rate affiliated with that sum. The higher the city’s credit rating, the lower the interest rate.

“A strong credit rating from all three major agencies allows us to literally build One Richmond, a city where residents can trust their government to provide the services they rely on and the development that will keep us growing,” said Mayor Stoney.

Acting Chief Administrative Officer Lenora Reid noted, “This credit rating upgrade can be attributed to effective operations citywide and the extraordinary efforts of the city’s finance staff. We are continuing on our upward trajectory.”

Click here to read the press release from Moody’s Investors Services.

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Statement from Mayor Levar M. Stoney and Councilwoman Ellen Robertson regarding tent encampment at Annie Giles Community Resource Center

Today the city held a public meeting with residents currently living outdoors on property owned by Virginia Commonwealth University adjacent to the city’s Cold Weather Overflow Shelter.

These are some of the most vulnerable members of our community. We are working with the full continuum of Richmond’s non-profit, faith-based, homelessness and social service providers to support this community and to work with each resident individually to address their unique challenges and circumstances.

While we have significant concerns for the health and safety of those living in the encampment, until a longer term solution is identified, we will work closely with these service providers to have a presence, on-site, at the Cold Weather Overflow Shelter so we can help connect those currently living there with available resources and more stable housing as quickly as possible.  

We firmly believe housing is a right, not a privilege. The city’s Homeless Strategic Plan (click here to access the presentation and report) will guide our path as we work with community stakeholders and members of City Council to find long-term solutions to homelessness in our city – from creating more shelter beds to providing healthy, safe and sustainable housing. We can and must do more.

Mayor Levar M. Stoney

Councilwoman Ellen Robertson

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Mayor Levar M. Stoney statement on the Johnson Consulting third party review of the Navy Hill proposal

“This third-party report, requested and funded entirely by City Council, confirms that the proposal is ‘written in the city’s favor,’ and reaffirms our confidence that in the event of a default, ‘the city has no legal or moral obligation’ and ‘retains control if the development does not perform.’

“The report also asserts that the arena program and cost, as well as the financials associated with it, are reasonable and consistent with venues in comparable markets.

“In reviewing the proposal’s financials, the third-party consultants found that all of the mechanisms deployed, including non-recourse bonds and a stabilization fund, are either entirely appropriate or the accepted industry standard and best practice. 

“Most importantly, the project’s effect on schools’ bottom line would be ‘net neutral’ at worst, and ‘positive’ at best.

“In short, this ‘world class’ project both is consistent with national trends and offers groundbreaking, transformative opportunities for Richmond. In fact, these consultants hired by Council stated that our growth has been inhibited by the absence of these types of projects. 

“Armed with yet another third-party report, a report which describes the proposal as a ‘thoroughly vetted development by various outside specialty consultants’ that promises ‘tax revenue potential,’ it’s time that council members come to the table and make this work.

“As the mayor of this great city, I want to see our elected officials exhibit faith in our city’s future, not fear borne of our city’s past.”

To read the most recent third-party report funded by Richmond City Council, click here.

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