The Town of Southbury is proud to announce that it has achieved a prestigious AAA bond rating from Standard and Poor’s, underscoring the town’s commitment to fiscal responsibility, prudent financial management, and long-term economic stability. The AAA bond rating marks the first time achieving this rating in the Town of Southbury’s history.
S&P Global Ratings (S&P), a division of the Standard & Poor’s Financial Services LLC that rates municipal credit, recently reviewed the town’s credit status as it considers the necessity of bonding expenses to accommodate the impacts of August’s historic flood on the town’s public infrastructure. S&P’s review is wide reaching, covering many aspects of how the town is managed, beyond simply its finances. It covers updates on the local and regional economy, the town’s management practices, finances, debt position and other considerations such as post-employment benefit and pension obligations. Following the review, S&P rated on the above-referenced obligations, a rating of “AAA” – the highest rating attainable, reflecting the Town’s superior credit characteristics.
The bond rating upgrade to AAA reflects Southbury’s exceptional financial health and creditworthiness. This recognition not only reaffirms the town’s strong financial position but also highlights its ability to effectively manage taxpayer dollars and navigate economic challenges.
“This rating demonstrates not only the strength of our balance sheet but reflects the improvement of the organization as a whole,” said Southbury First Selectman, Jeff Manville. “Throughout my Administration I have strived for continuous improvement, applying measurable processes and procedures, and this rating is a by-product of that approach. I am proud of our entire staff, and the outstanding volunteers who serve this town, for achieving this recognition.”
The rating agency cited the town’s very strong economy, very strong management with consistently strong financial operations, low debt burden, and conservative budget practices.
The AAA bond rating should offer numerous benefits to Southbury, including lower borrowing costs, increased investor confidence, and enhanced access to capital for essential infrastructure projects and community development initiatives. Additionally, it demonstrates to residents, businesses, and investors alike that Southbury is a stable and desirable place to live, work, and open a business.
Finance Director, Dan Colton, who received the news from S&P stated, ”This upgrade reaffirms the commitment from the Finance Office, Administration, Board of Finance, Board of Selectman, and all Town staff to practice sound fiscal policies throughout the year and when putting together our annual budget.”
Last year, Southbury commemorated its 350th anniversary, and now it is able to celebrate this significant milestone, achieving its first AAA bond rating in history.
For information on the bond rating increase, please contact Dan Colton at financedirector@southbury-ct.gov.
Click to view the S&P Global Ratings letter.