Moody’s Investors Service has upgraded the Town of Southbury’s general obligation bond rating from Aa2 to Aa1 affecting 2.3 million dollars of outstanding debt. The increased rating enables the Town to borrow at lower interest rates in future years, saving taxpayers money over the life of the bonds. Aa rated obligations are judged to be the highest quality and are subject to very low credit risk. The upgrade to Aa1 is the highest level in the Aa category and exceeds the median rating of Aa3 for US cities. The Town’s commitment to fiscal responsibility has led to a stronger financial position.
Moody’s noted the Town’s strengths in their annual review:
- Trend of positive operating results supported by conservative budgeting
- Reliance on stable property tax revenues
- Very low long-term liabilities and fixed costs
- Sound income and wealth levels and low poverty rate
First Selectman Manville says, “We are pleased to receive this news from Moody’s. My administration has been told that a municipality of our size could not receive the Aa1 rating. The upgrade affirms the Town’s excellent financial operations.”
Finance Director, Dan Colton, who received the news from Moody’s, states that, “This upgrade shows the commitment from the Administration, Board of Finance, Board of Selectmen and Town Hall staff to practice sound fiscal policies throughout the year and when putting together our annual budget.” For more information on the bond rating increase, please contact Dan Colton at email@example.com.