Fuquay-Varina bond rating improved to AAA - CBS 3 Springfield - WSHM

Fuquay-Varina bond rating improved to AAA

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Mayor Byrne Mayor Byrne
FUQUAY-VARINA, N.C. -

The town of Fuquay-Varina announced some good news on the financial front Friday, saying that Standard & Poor's, a top credit rating agency, has upgraded the town's credit rating from AA to AAA – the highest bond rating available.

“Achieving the highest municipal bond rating possible has been a goal of the Town of Fuquay-Varina for many years,” Mayor John W. Byrne said. “It is through the vision, hard work and leadership of the Fuquay-Varina Board of Commissioners, town management and our Finance Director Carla Morgan, that we have been able to achieve this important distinction.”

Fuquay-Varina said it is one of only 15 municipalities in North Carolina with an AAA bond rating and the only one with a population below 25,000.

Raleigh, for example, has had a AAA bond rating since 1974, according to the town's website. Garner has a rating of AA-plus.

Bond ratings are important to cities because they determine interest rates. A higher bond rating means investors are more confident the bond will be paid and so they are willing to provide a lower interest rate.

Fuquay-Varina said its growing population, low tax rate and effective financial management led to the improved rating.

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