Standard & Poor’s reaffirms Fairfield’s ‘AAA’ rating

First Selectman Michael Tetreau announced today that Standard & Poor’s (S&P’s) Rating Services has reaffirmed Fairfield with a stable outlook and ‘AAA’ rating, the highest rating a municipality can achieve.

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.

According to S&P’s report, “the ‘AAA’ long-term rating reflects S&P’s 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.”

The report also states that, “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 town’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.”

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

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