...The 'AA+' VPBA bond rating, one notch below the Commonwealth of Virginia's 'AAA' IDR, reflects the slightly higher degree of optionality associated with availability of appropriations for debt service. Virginia's 'AAA' IDR reflects careful fiscal management, strong reserves, exceptional gap-closing capacity and relatively low long-term liabilities. Virginia's strong economic profile provides a stable revenue base with solid growth prospects. The 'AA+' rating assigned to various appropriation-backed bonds issued by the commonwealth and its instrumentalities, rated one notch below the commonwealth's 'AAA' Long-Term IDR, reflects availability of biennial budgetary appropriations to cover bond debt service. The 'AA+' rating on bonds supported by the commonwealth's intercept of appropriations to individual public higher education institutions is supported by strong intercept provisions and robust coverage of debt service from state appropriations....
