Negative Outlook

Moody's gave Virginia and four other top-rated states -- Maryland, South Carolina, Tennessee and New Mexico -- a negative outlook because federal spending drives a large part of their economies. That makes them vulnerable to actions of a Congressional supercommittee charged with finding $1.5 trillion of U.S. budget savings over the next decade.

The effects on Virginia and the other states won't be taken into account by investors until the committee issues its recommendations, set for Nov. 23, Cure said.

"I don't think people are that concerned about it yet," Cure said. "It will come into play more once they get a sense of what's going on with attempts to balance the federal budget."

Moody's said Oct. 4 it will analyze Virginia's "available financial resources to offset risks related to the U.S. government."

Revenue Gains

Governor Robert McDonnell announced on Sept. 15 that August was the 17th month of 18 where Virginia's tax collections rose from a year earlier. The Republican said on Aug. 18 that the commonwealth ended fiscal 2011 with a $545 million budget surplus. He proposed using $30 million of it to help alleviate potential U.S. spending cuts.

Proceeds from this week's bond sale will finance a residence hall at Virginia State University and dormitories at the College of William and Mary and at George Mason University, according to the preliminary offering statement. Dormitory fees will repay the debt, Evelyn Whitley, Virginia's director of debt management, said in a telephone interview from Richmond.

Following are descriptions of pending sales of municipal debt:

CALIFORNIA plans to sell $2 billion of general-obligation bonds as soon as next week to finance capital projects and refund existing debt. Goldman Sachs & Co. and JPMorgan Chase will lead a team of banks on the deal. The transaction is rated A1, Moody's fifth-highest grade. (Added Oct. 12)

HUDSON YARDS INFRASTRUCTURE CORP., which finances development of a district west of midtown Manhattan, plans to sell $1 billion of bonds as soon as next week to help pay for extending the No. 7 subway line to the neighborhood. The sale is rated A2, Moody's sixth-highest grade. JPMorgan Chase is senior manager. (Added Oct. 7)