Standard & Poor’s (S&P) Ratings Services has assigned Fairfield a AAA rating, S&P’s highest rating, to the town's Dec. 10 General Obligation Bond Issue.
S&P also affirmed the town’s long-term AAA rating and stable outlook, and rated the town’s management conditions “very strong”.
The bond offering was a refinancing for $10,925,000 of bonds originally issued in 2004, maturing through 2020. As a result of this action, the town reduced the average coupon note on the debt from approximately 4.418 percent to 0.908 for a savings of approximately $760,000, according to First Selectman Mike Tetreau.
“S&P’s affirmation of our AAA rating and stable outlook is a strong reflection on the sound financial management and practices our Town has put in place to keep Fairfield financially strong and well managed,” said Tetreau. “I am also very pleased that S&P rated the Town’s Management Evaluation as “very strong". This achievement is the result of a great deal of effort by the Board of Selectmen and Board of Finance and the Town’s Finance Department.”
According to S&P’s report, “The rating reflects a strong budgetary flexibility with 2012 audited reserves at 6.1 percent of adjusted general fund expenditures; adequate budgetary performance, which takes into account a revenue stream S&P considers stable; a very strong liquidity providing very strong cash levels to cover both debt service and expenditures; a very strong management with good financial policies and a consistent ability to maintain balanced budgets; and a very strong debt and contingent liability profile, aided by rapid amortization.”