Henrico expected to announce quad-AAA bond rating Tuesday

August 25, 2025 . 5:07 PM

2 min read

Henrico County officials are expected to announce Aug. 26 that the county has achieved a quad-AAA rating on its general obligation bonds. The designation would make it one of just a handful of localities in the nation to earn AAA ratings from each of the four top bond rating agencies and likely just the second one in Virginia (Chesterfield became the first earlier this year).

For 27 years, Henrico has enjoyed a triple-AAA rating on its general obligation bonds (those it sells to fund projects authorized by voters in public referendums). The designation indicates that each of the three major bond rating agencies (S&P Global Ratings, Moody’s Investors Service and Fitch Ratings) has reviewed Henrico’s financial standing and determined that it has demonstrated the highest level of credit worthiness – a sign to potential investors that buying the county’s G.O. bonds is a low-risk endeavor.

The county typically enjoys among the lowest interest rates when it sells those bonds as a result, saving it (and county taxpayers) money.

This year, Henrico invited a fourth rating agency – Kroll Bond Rating Agency – to review its finances ahead of a planned fall G.O. bond sale totaling $88 million.

KBRA, which recently was recognized by the U.S. Federal Reserve as a major rating agency of municipalities, last week assigned the county’s G.O. bonds a AAA rating.

Fitch followed suit by confirming its own longstanding AAA rating for the county Aug. 22.

County officials have called a 12:15 p.m. press conference for Tuesday at Richmond international Airport to make a bond-rating announcement.

Henrico is planning to issue $88 million in G.O. bonds to help fund eight projects authorized by voters during the county’s 2022 bond referendum:

• the construction of a new version of Quioccasin Middle School ($60 million in funding from the planned bond sale); • new drainage improvements ($7.5 million); 

• the renovation of Johnson Elementary School ($5 million); 

• the renovation of Jackson Davis Elementary School ($4.5 million); 

• the replacement of Longan Elementary School ($4.5 million); 

• the construction of a new animal adoption center in Short Pump ($2.7 million)

 • the construction of Tuckahoe Creek Park Phase III ($2.5 million); 

• the construction of Henrico Schools’ Environmental Education Center in Varina ($1.3 million).

Both KBRA and Fitch also issued AA+ ratings for the county’s. Economic Development Authority revenue bonds, a total of $42.5 million of which will be sold this fall to help fund two projects:

• the construction of a new Social Services building ($33.5 million in funding from the planned bond sale); 

• the replacement of its financial system ($11.5 million).

EDA bonds for any locality are rated at least one “notch” lower on the bond-rating scale than are G.O. bonds from the same locality, simply because they are viewed as having a slightly higher degree of investor risk.