Arlington County has retained the highest possible credit rating for the 26th year in a row.
All three major bond-rating agencies — Moody’s, S&P Global and Fitch Ratings — reaffirmed the county’s Aaa/AAA/AAA debt ratings this week, the county announced this morning. Arlington is one of just 54 counties nationwide, and one of 13 in Virginia, to hold the top mark from all three.
The rating lets the county borrow at the lowest available interest rates, holding down the cost of its debt for taxpayers.
This year’s reaffirmation is more notable than most, the county said, coming amid the inflation, slow revenue growth and rising expenses that have strained its finances and prompted it to defer major borrowing over the past two years.
“This reaffirmation demonstrates the importance of Arlington’s approach to its financing and the stewardship of the County’s funds — and is especially critical during the recent fiscal uncertainty felt by Arlington County and across our region,” County Manager Mark Schwartz said in a statement.
The ratings land days before the county sells $161 million in general-obligation public improvement bonds on Wednesday (June 3). The County Board authorized the debt sale earlier this month, clearing the way for Arlington’s first major bond sale since 2024.
Proceeds will fund county and Arlington Public Schools projects spanning public safety, community infrastructure, transit and transportation, and stormwater, according to the county. The work was approved by voters in bond referendums held between 2018 and 2024.
In its report, Moody’s cited a long trend of stable finances, strong management, strong income and property-tax metrics and low leverage, according to the county. Fitch said the county’s “carrying costs to governmental expenditures and liabilities to governmental revenue remain strong,” while S&P pointed to a “demonstrated history of balanced financial results” supported by “an affluent, resilient, and growing property tax base.”
When the county last sold general-obligation bonds, in June 2024, it issued $93.2 million to Bank of America at an average 3.49% interest rate. County staff estimate the 2026 sale will price between 3.25% and 3.75%.
