Kupchick: Town given AAA bond rating, raises $40M in bond, note sale
FAIRFIELD — The town has maintained a AAA bond rating from all three major rating agencies and had a successful bond and note sale totaling more than $40 million, according to First Selectwoman Brenda Kupchick.
“I am proud to announce that after several in-depth meetings with the rating agencies, the Town unanimously received a AAA rating from the nation’s top three rating agencies: Moody’s Investor Services, S+P Global Ratings and Fitch Ratings,” Kupchick said.
Kupchick said the agencies gave the rating because of Fairfield’s strong economy, management and financial policies and practices.
The town’s annual bond and note sale, Kupchick said, was held June 30. More than $23 million in long-term bonds and $17.4 million in short-term notes were sold.
“The proceeds of the issues are to provide much needed funding to various ongoing capital projects in town for schools, general purpose and sewer improvements,” Kupchick said, adding that larger projects such as the Mill Hill School renovation and the Smith Richardson clubhouse were being financed through the bond sale.
Kupchick said Raymond James placed the winning bid on the bonds with an interest rate of 1.82 percent. She said TD Securities purchased the notes at a winning rate of 0.38 percent.
Kupchick said the interest rates were among the lowest in the town’s history, and will help reduce costs in the future.
Matt Spoerndle, the town's financial adviser, said he was very pleased with the positive outcome for the Town.
“It was a perfect combination of an ultra-low rate environment and an issuer with the best possible credit rating that led to these historic results,” he said.