Virginia Municipal Bonds – How Are They Rated?

Virginia Municipal Bonds

How are Virginia municipal bonds rated? These bonds are rated in the same way that other bonds are, and this involves the three main credit rating agencies. These are Standard and Poor, Moody, and Fitch, and all three of these rating agencies have given a AAA rating for municipal bonds from seven states including Virginia. California municipal bonds are not valued by investors as highly, because of the financial difficulties that the state has faced in recent years and the fact that the bonds do not carry the same high rating. Virginia municipal bonds have been rated AAA for more than seventy years, and these bonds are suitable for most investors.

Massachusetts municipal bonds are also rated lower than those from Virginia. There are many reasons for this. The state of Virginia has shown an ability to save taxpayer funds to the tune of millions of dollars for the interest payments made when debt is financed. Because the state has less interest going out in payments for the debt on Virginia municipal bonds the available resources are used more efficiently while keeping tax rates lower for both residents and businesses. All of the best municipal bonds which have the highest ratings come from states with sound fiscal policies and financial discipline.

Virginia municipal bonds are also one of the top rated because of the fiscal health of the state. Virginia has an administrative and financial status which the rating agencies determine to be excellent, and this leads to a higher bond rating. Virginia also features more counties with a AAA rating from the credit agencies than any other, and this also plays a role in the decision by many investors to invest in municipal bonds from this state. Florida municipal bonds do not inspire the same confidence, either with the investors or the credit rating agencies.