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 VPBA bonds supports critical infrastructure and equipment for state buildings and parks, public safety at both the state level and the local level through jail construction reimbursements, water quality improvement projects to promote healthy rivers and the Chesapeake Bay, and even improvements to Virginia's ports. Interest paid to bond holders is exempt from Virginia income taxation, and in most cases, federal income taxation.
The VPBA bonds are currently rated AA+/Aa1/AA+ 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.