Standard & Poor's Reaffirms Fairfield's AAA Rating

Standard & Poor’s (S&P) Rating Services this week reaffirmed Fairfield with a stable outlook and ‘AAA’ rating, the highest rating a municipality can achieve, according to a release from First Selectman Michael Tetreau's office.  

S&P has reassigned Fairfield with the ‘AAA’ long-term rating and has assigned its ‘SP-1+’ short-term rating to the town’s series 2013 general obligation (GO) bond anticipation notes (BANs) maturing on July 18, 2014.  The outlook was reaffirmed as stable.  

Some highlights of the S&P report include: 

• “The ‘AAA’ long-term rating reflects the S&P assessment of Fairfield’s experienced and good financial management, coupled with a good financial position supported primarily by reliable property taxes and moderate and manageable debt burden;"
• "The short-term note rating reflects the town’s high investment-grade rating and low market risk profile;"
• “Fairfield’s economic fundamentals have remained extremely strong through various economic cycles and the town’s tax base remains very strong. Despite a difficult revenue environment the past few years, Fairfield’s financial position has improved to good levels;"
• The town has an experienced management team, good financial policies, and a strong and stable property tax base;”   
• The report also noted the Fairfield's current level of reserves is at its highest point in the past eight fiscal years.

"We are very pleased that one of the nation’s leading rating agencies has assigned Fairfield with this top honor," Tetreau said. "This coveted rating and S&P’s analysis on Fairfield’s good financial policies and experienced financial management reflect town officials’ ongoing efforts to keep Fairfield a fiscally strong community.”  

Matthew Spoerndle from Phoenix Advisors, the town’s Financial Advisor, added, “S&P continues to recognize the Town’s strong and prudent fiscal management, solid tax base and active economic development.  As a result, the town has positioned itself very well for the note sale in an environment where credit ratings are crucially important.”

In other financial news, Fairfield officials on Thursday sold $20.26 million worth of bonds resulting in an "exceptional" interest rate.