A Virginia-focused investment program for managing local government funds was recently assigned an AA/S1 rating by Standard & Poor’s (S&P).
The VACo/VML Virginia Investment Pool (VIP) is starting with more than $60 million invested on behalf of local governments.
The AA rating is the second-highest issued by the S&P, which uses a credit quality ratings scale that ranges from AAA to CCC. The S1 rating reflects S&P’s fund volatility ratings with S1 being the least volatile, reflecting VIP’s conservative approach.
VIP was formally established September 13, 2013, as a collaborative effort between local treasurers, the Virginia Association of Counties and the Virginia Municipal League.
VIP, which is administered by VML/VACo Finance, provides localities the opportunity to jointly invest in relatively short-term, conservative fixed income investments as a way to improve their earnings on reserve funds and funds set aside for at least a year.
“We are excited that Standard & Poor’s has given the VIP program an excellent rating,” VACo Executive Director Jim Campbell said. “We hope other counties see this and seize the opportunity to join the investment pool.”