Third credit firm issues AAA rating for Fairfield bonds
Published 11:06 am, Thursday, July 12, 2012
Another day, another top grade for Fairfield's financial status.
Standard & Poor's credit-rating firm this week re-affirmed its top AAA grade, with a stable outlook, for the town's bonds. It is the third of the nation's top credit-rating firms to give Fairfield its highest grade for financial status.
"We are very pleased that the nation's leading rating agencies have all assigned Fairfield with these top honors," First Selectman Michael Tetreau said in a statement Wednesday. "Despite the weakened economy, Fairfield remains a fiscally strong community thanks to the diligent work of our town officials."
S&P assigned its AAA long-term rating to the town's series 2012 general obligation bonds and affirmed its AAA long-term rating on the town's existing general obligation debt with a stable outlook. S&P also assigned its SP-1+ rating, its highest short-term rating, to the town's bond anticipation notes maturing July 19.
The S&P report states, in part: "Fairfield maintains a stable financial profile due to its experienced management team, good financial policies, and strong and stable property tax base. Economic fundamentals have remained extremely strong through the recent recession. Over the past five fiscal years, the town's reserve position has improved despite the weakened economy. The current level of reserves is at the highest point in the past eight audited fiscal years."
In the statement issued by Tetreau, Matthew Spoerndle from Phoenix Advisors, the town's financial advisor, said, "Fairfield's ability to maintain the highest ratings from all three rating agencies will bode very well for the bond and note sales. This goes a long way to keeping the costs of borrowing at the lowest possible level."
Both the Moody's and Fitch credit-rating firms had issued similar AAA status reports on the town's bonds over the last two weeks.