Debt Mess on Capitol Hill Could Hurt Prince William County's Top Credit Rating

The continued impasse on Capitol Hill over raising the debt ceiling is spilling over into local governments.

On Thursday, Prince William County was notified by Moody's Investor Service that they are reviewing the Northern Virginia region's bond ratings for a possible downgrade. Prince William County was one of more than 100 local governments put on notice.

"The continued inaction and partisan bickering over the very high amount of debt the federal government is carrying and how to deal with it is putting at risk the credit rating of our Northern Virginia localities," said a statement signed by Chairman Corey Stewart and a number of regional officials. 

"For the first time, our local governments are facing the possibility of losing our because of the federal government’s failure to deal with the ongoing debt crisis.  This has reached crisis level and is impacting everyone in Northern Virginia, and we say enough is enough!," the statement continued.

In the release issued by the county, the message was clear: "Northern Virginia does not have a debt problem, the federal government does."

Stewart said that the practical impact of a potential credit downgrade means that for the county, it will be more expensive to borrow money for for schools, and infrastructure. "

“It’s too bad that the federal government can’t manage its own financial house as Prince William County and other jurisdictions can,” said Stewart. “We have to balance the budget every year, and these bozos up there with access to incredible resources are unable to balance the budget. Every local official looks at that situation and shakes their head.”