FAIRFIELD, Conn. -- Fairfield has received a AAA rating from Standard & Poor's Ratings Services and rated the town’s management conditions as “very strong.”
“S&P’s affirmation of our AAA rating and stable outlook is a strong reflection on the sound financial management and practices our town has put in place to keep Fairfield financially strong and well managed," First Selectman Mike Tetreau said. "I am also very pleased that S&P rated the Town’s Management Evaluation as 'very strong.' This achievement is the result of a great deal of effort by the Board of Selectmen and Board of Finance and the town’s Finance Department.”
The town also did a bond offering to refinance $10.925 million in bonds originally issued in 2004, maturing through 2020.
As a result of the action, the town reduced the average coupon note on the debt from 4.418 percent to 0.908 percent for a savings of about $760,000.
Raymond James and Janney co-managed the offering.
“The rating reflects a strong budgetary flexibility with 2012 audited reserves at 6.1 percent of adjusted general fund expenditures; adequate budgetary performance, which takes into account a revenue stream S&P considers stable; a very strong liquidity providing very strong cash levels to cover both debt service and expenditures; a very strong management with good financial policies and a consistent ability to maintain balanced budgets; and a very strong debt and contingent liability profile, aided by rapid amortization," according to the S&P report.
The report also noted "the very strong management rating reflects the town’s financial and budgeting processes which include formal quarterly variance analysis and investment reports, and incorporates various contingencies in management reports and the evaluation of every revenue line item in the budgetary process," according to a release.
Matthew Spoerndle from Phoenix Advisors, the town’s financial adviser, said, “S&P continues to recognize the town’s strong and prudent fiscal management, solid tax base and active economic development. As a result, the town was able to issue at a very low rate and maximize debt service savings.”