In the course of routine surveillance, Fitch affirms the 'A' rating on the Economic Development Authority of Gloucester County, Virginia's (the county) approximately $8.1 million in outstanding lease revenue refunding bonds (County of Gloucester, Virginia Courthouse Project), series 2006. . In addition, Fitch affirms the county's implied general obligation debt rating of 'A+'. The Rating Outlook is Stable.
The 'A' rating on the lease revenue refunding bonds reflects the general credit characteristics of the county, the essentiality of the leased assets, and the legal provisions of this lease financing. The county's implied general obligation debt rating of 'A+' incorporates its strong financial position, moderately low debt burden with above-average amortization, and an economy centered on service, retail, and governmental occupations. The county's unemployment rate has historically been below state and national averages, and the local labor force and employment base continues to grow despite national economic softening.
Financial resources are strong, with fund balance maintained well above policy minimums. Debt levels are moderately low even when considering obligations of the county's utility system, which is reliant upon general fund transfers to support annual operations, and debt policies are in place to ensure affordability.
Note: Fitch issued an exposure draft on July 31 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'). At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.