Town refinances $24 million — Fairfield’s Aaa rating re-affirmed

CFO Bob Mayer, Matthew Spoerndle, Senior Managing Director at Phoenix Advisors, the Town’s Financial Advisor, and First Selectman Mike Tetreau.

CFO Bob Mayer, Matthew Spoerndle, Senior Managing Director at Phoenix Advisors, the Town’s Financial Advisor, and First Selectman Mike Tetreau.

First Selectman Mike Tetreau announced today that Moody’s Investors Service has re-affirmed the Town’s Aaa coveted rating and given Fairfield’s finances a stable outlook. Moody’s has assigned the Town with an Aaa rating to Fairfield’s $29.2 million of General Obligation Bonds, Issue of 2015, and to $188.5 million in outstanding long-term general obligation debt.

In addition, the Town’s Bond Committee approved a proposal from Raymond James & Associates to purchase General Obligation Refunding Bonds, Issue of 2015, in the amount of approximately $24,240,000, which reduces the Town’s interest costs going forward by approximately $1,450,000.

First Selectman Mike Tetreau said, “As a result of Fairfield’s strong financial management and budgeted surpluses, our Town has been fortunate to see the positive results of five consecutive years of General Fund balance growth resulting in the total General Fund balance increasing to $22 million of revenues. This balance growth has been the Town’s highest level of fund balance since 2003.”

According to Moody’s Rating Report, which was issued to the Town on March 24, 2015, “Moody’s highest long-term rating incorporates a stable and improving financial position which is supported by formal policies and strong management, as well as controllable liabilities for debt, pension, and OPEB. The stable outlook incorporates our expectation that Fairfield will maintain superior credit quality given an improving financial position and a large, favorably located tax base with strong resident wealth levels.”

Matthew Spoerndle, Senior Managing Director at Phoenix Advisors, the Town’s Financial Advisor said, “This is great news for Fairfield. Consistently being awarded the rating agencies’ highest rating (Aaa) is truly a reflection of the Town’s strong financial management which only enhances the anticipated interest cost savings with this refinancing.” Mr. Spoerndle further stated that “The results of today’s bond refinancing at exceptional. Congratulations to the Town!”

CFO Bob Mayer said, “We are very happy with the results of today’s financing efforts. Given the recent volatility in interest rates we are fortunate to have hit the market at a very opportune time.”

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