Henrico County has achieved “quadruple AAA” status for its water and sewer revenue bonds, becoming the first public utility in the United States to receive top credit ratings from all four major municipal rating agencies: S&P Global Ratings, Moody’s Investors Service, Fitch Ratings, and Kroll Bond Rating Agency. This development follows Henrico’s recognition in August as the third county nationwide to earn AAA ratings for general obligation bonds from these agencies.
Board of Supervisors Chair Dan J. Schmitt stated, “This elite bond-rating status – ‘quadruple AAA’ – underscores Henrico County’s commitment to excellence in fiscal management and leadership in all aspects of governance. These ratings – first with general obligation bonds and now with water and sewer revenue bonds – represent far more than accolades. They translate into lower interest rates and ultimately millions of dollars in savings for our taxpayers as we continue to make strategic investments in facilities and infrastructure that support the county’s high quality of life. These ratings will help us provide tremendous value as we improve and modernize our public utilities system, making it stronger, with enhanced redundancies and resiliency, for all our customers.”
Earning AAA status for revenue bonds is considered challenging because they are backed mainly by revenues from water and sewer service sales rather than a broader set of funding sources like taxes. General obligation bonds benefit from backing by local tax revenues such as real estate and personal property taxes.
At a news conference outside the Water Treatment Facility, officials referenced the region’s previous “Quadzilla” designation after Henrico joined Chesterfield as two of only three counties nationally to secure quadruple AAA general obligation bond ratings. Schmitt added, “We are the only member of the Quadzilla 2.0. We’re accepting members, and we’ll make pins, if necessary.”
During the event, county leaders outlined plans to issue $125 million in water and sewer revenue bonds. The funds will help launch a $300 million cross-county distribution line intended to expand service from the Water Treatment Facility on Three Chopt Road to additional areas of Henrico currently dependent on Richmond’s water treatment plant under a 1994 agreement. Earlier this year, these areas were affected when a power outage disrupted Richmond’s facility.
Henrico first achieved triple AAA status for water and sewer bonds in 2019 when Moody’s assigned its highest rating. Kroll Bond Rating Agency has now also given its top assessment with a stable outlook alongside S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings.
Kroll noted continued growth in Henrico’s utilities system with over 100,000 water customers—nearly matched by sewer customers—and said its customer base is diverse: the ten largest users account for just 4.1% of operating revenues.
“The long-term rating reflects the … [system’s] strong financial performance, rate setting autonomy, and provision of highly essential services to a growing service area with favorable demographics,” Kroll stated in its report. “The service area is characterized by strong per capita income and low unemployment levels relative to the Commonwealth of Virginia.”
Henrico County Public Schools District serves over 50,000 students across 68 schools during the 2023-24 academic year according to state data. Deep Run High School had the largest enrollment among them at just over 2,000 students state records show. Enrollment grew slightly compared to last year with official figures reporting an increase. Black students make up about one-third of total enrollment while Holladay Elementary enrolled nearly one-fifth of all pre-kindergarteners in the district based on education statistics.
