In the first week of the month, credit rating powerhouses Fitch and Moody’s assigned Loudoun County their highest credit ratings – ‘AAA’ from Fitch, and ‘Aaa’ from Moody’s.
Loudoun County has retained this ‘AAA’ rating from Fitch Ratings, as well as from fellow powerhouse Standard & Poor’s (S&P), since 2005. Moody’s has assigned Loudoun County an ‘AAA’ rating since 2004. There are only about 40 counties nationwide that enjoy the distinction of receiving the highest rankings from all three agencies, according to the Charlottesville Business Journal.
Receiving and maintaining top-tier credit ratings from the big players in the field certainly sounds impressive, but what does this actually mean for Loudoun County, and our impressive mixed-use community, One Loudoun?
First, it may be helpful to understand what these credit ratings mean. Credit ratings from Fitch, S&P and Moody’s are used as indicators for investors to determine which investments are most likely to yield a return. Fitch and Moody’s highest ratings indicate the lowest expectation of credit risk.
In general, these top-tier ratings are an indicator of good management and financial health, and mean that Loudoun County can continue to borrow money at lower rates. This strong credit speaks volumes to Loudoun’s strong sense of community and affluence. Though there are certainly other affluent counties nearby, residents decide to live, work and shop within Loudoun County, thereby strengthening the local economy and tax base. One Loudoun, and communities like it, have built this local loyalty by providing everything that residents need within close distance of their homes.
Fitch Ratings cited the following “key rating drivers” that influenced their ‘AAA’ rating for Loudoun County:
-Robust economy with “strong and diverse economic base benefits” from its proximity to Washington, D.C., high wealth levels, low unemployment and highly educated labor pool.
-Sound financial position supported by “prudent fiscal policies and planning.”
-Moderate debt levels from the county’s adherence to good debt management guidelines.
Fitch also pointed out that Loudoun County is among the fastest growing in the country, and has a “dynamic local economy” fueled by an established business base – which One Loudoun shops and restaurants contribute to.
Fitch also pointed out that the median household incomes of Loudoun County residents are more than double the national average, and predicted that expansion of the Metrorail into eastern Loudoun will positively affect the county’s economy. The expansion of the Metro into Loudoun will not only have an economic benefit, but will provide even more convenience to the residents and businesses in communities such as One Loudoun.
Moody’s stated the following strengths for Loudoun County when assigning their ‘AAA’ rating
-Solid reverse levels.
-Strong financial management.
-Strong, affluent, diverse and growing tax base.
Considering these ratings indicate strong financial health and reflect an overall healthy economy, it’s only natural that businesses would want to flock to Loudoun County. And there’s no better place in the county to allow your business to thrive than One Loudoun. In our unique community with over 1,040 and new homes and over 700,000 square feet of retail and nearly 3 million sq. ft. of class A office space, businesses can take advantage of the positive financial environment to flourish at One Loudoun.
SOURCES: Business Wire, Ashburn Patch, Investopedia, Charlottesville Business Journal, Moody’s Investors Service, Fitch Ratings