Bonds are used in the Commonwealth of Virginia to finance the costs of long term capital improvements throughout the state. The Commonwealth does not use bonds to close budget gaps or fix cash flow problems. Investing in Virginia bonds supports critical infrastructure, and interest paid to bond holders is exempt from Virginia income taxation, and in most cases, federal income taxation.
The Commonwealth's general obligation bonds are currently rated AAA/Aaa/AAA by Fitch, Moody's and Standard and Poor's rating agencies respectively. Rating agencies focus on several key factors in assessing a state's credit quality: control of debt burden, economic vitality/diversity, fiscal performance, and administrative capabilities.