S&P’s report stated that the rating reflects Norfolk’s “strong economy,” its “very strong management, with strong financial policies and practices” and “very strong budgetary flexibility, strong budgetary performance, as well as very strong liquidity.”
NORFOLK, VA – Standard & Poor’s Global Ratings (“S&P”) affirmed its AAA credit rating on the City’s existing long-term debt, in advance of the General Obligation new money and refunding bond sale planned for early March.
S&P’s report stated that the rating reflects Norfolk’s “strong economy,” its “very strong management, with strong financial policies and practices” and “very strong budgetary flexibility, strong budgetary performance, as well as very strong liquidity.” S&P noted that the City’s proactive management of its environmental, social, and governance risks are integrated in Norfolk practices and long-term planning. S&P applauded the City’s resiliency efforts to address sustainability, climate change and sea level risk in its long-term financial and capital planning efforts and its development regulations, while leveraging its strategic location and importance.
S&P further noted the City has committed to improving the economic power of its residents through several different programs, which over time may bolster economic metrics. S&P particularly highlighted the City’s work towards redeveloping the St. Paul’s neighborhood and transitioning current low-income housing to mixed-income housing. S&P did note Norfolk’s weak, but manageable debt and contingent liability profile and the slight expansion of the City’s debt metrics.