All three rating services have reaffirmed the City of Suffolk's AAA Rating.
The AAA Rating represents the credit-worthiness of the City of Suffolk government issued bonds. It also provides assurance that the City of Suffolk has the highest quality of bonds with the least amount of risk and that both the principal and interest on the bonds will be paid on time and in full.
In this week’s notifications, Fitch Ratings remarked that they consider our budget management practices during times of economic recovery to be strong, and that Suffolk is the largest city by area in the state and one of the fastest growing. They noted that our economy has benefitted from our available land, proximity to job markets in the Hampton Roads region, and regionally competitive tax burden. They further commented that population growth and economic diversification are expected to continue based on the sustained business investment as well as infrastructure improvements that will expand distribution routes.
Standard & Poor’s Rating service recognized consistent and robust operations, bolstering already very strong finances, continuing the trend started in fiscal year 2011. They further commented on our continuing economic growth and diversification spanning residential, commercial, and industrial developments, and noted that they expect the City will maintain steady operations, reinforced by robust policies and planning frameworks, resulting in a continued strong budgetary record. Suffolk received our very first AAA rating upgrade from Standard & Poor’s in 2014.
Moody’s Investors Service remarked that Suffolk’s financial position is sound, leading to long-term stability in both reserves and liquidity, supported by management’s consistently conservative budgeting practices and adherence to formal policies which were recently amended to increase the City’s fund balance requirement. They further commented on our stable and diverse tax base experiencing ongoing growth, and our strong and carefully managed financial position.
Suffolk is one of only a handful of Hampton Roads cities and Virginia localities that have achieved AAA status from all three rating agencies.