KBRA Assigns AAA Rating, Stable Outlook to County of Hanover, VA Special Obligation School Financing Bonds

NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AAA to the Special Obligation School Financing Bonds, Series 2025, issued by the Virginia Public School Authority ("the Authority") on behalf of the County of Hanover, VA ("the County"). Concurrently, KBRA assigns a AAA rating to outstanding parity obligations. The Outlook is Stable.

Proceeds of the Series 2025 Bonds will be used to finance the design and construction of a replacement elementary school facility and infrastructure improvements as well as equipment at various school facilities. A portion of the proceeds will additionally be used to pay the cost of issuance.

Special Obligation School Financing Bonds ("the Bonds"), including Series 2025, are limited and special obligations of the Authority, secured by and payable from payments made by the County to the Authority equal to principal and interest on the Bonds. The Authority has assigned its rights to receive all payments of principal and interest to the Treasurer of the Commonwealth and all such payments are made directly to the Treasurer.

Payments of principal and interest on the Bonds are general obligations of the County, backed by its full faith and credit pledge. The Board of Supervisors of the County is authorized and required to levy and collect annually an ad valorem tax upon all taxable property within the County, without limitation as to rate or amount, sufficient to pay Bond debt service.

Key Credit Considerations

The ratings actions reflect the following key credit considerations:

Credit Positives

• Healthy finances with consistently positive operating performance.
• Strong fiscal management policies and oversight.
• Expanding economy and stability in the tax base.

Credit Challenges

• Intentional maintenance of a flat tax rate, which may limit financial flexibility, though the rate may be increased as necessary.

Rating Sensitivities

For Upgrade

• Not applicable at the AAA rating level.

For Downgrade

• While not expected, a considerable drawdown in reserves below the County’s established policy.
• Significant contraction in the tax base or local economy.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. Local Government General Obligation Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1012223