Tuesday, February 14, 2012

Roanoke Bond Rating Stable at AA+

Fitch Ratings has affirmed the City of Roanoke's AA+ bond rating with a stable outlook.

According to Fitch's assessment, "Roanoke is a regional economic hub, with a diverse economy that leverages the city's employment sector strengths in health care and transportation. Growing opportunities in biomedical research spearheaded by a joint partnership between Carilion Clinic and [Virginia Tech] lend additional employment and income stability."

The AA+ rating also reflects Roanoke's steady reserve levels, as well as its moderate debt levels and debt service costs. Fitch's assessment additionally recognizes the city's prudent financial
policies, including the practice of adopting a balanced budget excluding the use of one-time measures or existing fund balance.

Bond ratings of all municipalities are periodically reviewed by agencies such as Fitch, and are assessed by considering factors including economy, debt structure, financial condition, demographic factors, and management practices. Standard and Poor's Rating Services also recently assessed the City of Roanoke, and affirmed the city's AA bond rating with a stable outlook.

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