Fairfield’s AAA rating reaffirmed

First Selectman Mike Tetreau announces that the Nation’s top rating agencies — Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings — have reaffirmed the Town’s AAA rating and stable outlook status. First Selectman Tetreau also announced that the Town successfully completed a bond and note sale yesterday.

Key highlights of the rating agencies’ assessments on Fairfield include:

Fitch ratings

  • Fairfield’s ‘AAA’ rating reflects Fitch’s expectation that “consistent with the town’s historically strong operating performance, revenue base stability and sound reserves”, “the town will maintain exceptional financial flexibility throughout economic cycles.”
  • “Given the town’s superior budget flexibility, Fitch does not expect the relocation of GE to have a negative impact on the town’s financial operations.”

Moody’s Investors Service

  • “Fairfield’s financial position will remain stable because of prudent budgeting and conservative financial management.”
  • The town’s “debt burden is in line with other AAA rated Connecticut municipalities and will likely remain stable or potentially decline over the coming years.”

S&P global ratings

  • “Strong management and strong budgetary performance and flexibility.”
  • “Very strong liquidity, debt and contingent liability position and a very strong economy.”

In addition, the Town’s Bond Committee, which consists of the Board of Selectmen, Chief Fiscal Officer Robert Mayer, and Town Treasurer Helen D’Avanzo, unanimously approved a $12,885,000 bond sale to Morgan Stanley whose winning bid was 2.74% and a $12,645,000 Note Sale to JP Morgan Securities whose winning bid was 1.0%.

Joining the Committee at yesterday’s auction were Matthew Spoerndle and Riley Green of Phoenix Advisors, LLC, the Town’s Financial Advisor, and Frank Cleary of Pullman & Comley, LLC, the Town’s Bond Counsel.

First Selectman Tetreau said, “I am thrilled that the Nation’s leading rating agencies have once again awarded Fairfield with the highest bond rating possible. I am also very pleased with the highly successful outcome of the bond and note sales. The interest rates that we have achieved speak to Fairfield’s sound financial management and fiscal prudence. Funding much needed Town projects at these low rates saves Fairfield taxpayers a significant amount of money over the long term.”

Chief Fiscal Officer Robert Mayer said, “The favorable rates realized, especially the 1.0% on the note sale, are indicators of the benefit of the Town’s AAA rating which was reaffirmed by all three major rating agencies.”

Matthew Spoerndle, senior managing director at Phoenix Advisors, LLC, said, “The results from yesterday’s sales were very strong. Clearly, the strength of the town’s exceptional credit ratings resulted in the success of the sale. This ensures costs to the taxpayer will be kept as low as possible.”

Chief Fiscal Officer Robert Mayer, Phoenix Advisors' Senior Managing Director Matthew Spoerndle (sitting) and First Selectman Tetreau.

Chief Fiscal Officer Robert Mayer, Phoenix Advisors’ Senior Managing Director Matthew Spoerndle (sitting) and First Selectman Tetreau.

 

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