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08/03/2020 12:00 AMFitch Ratings has re-affirmed the town’s AAA bond rating.
“Last week Finance Director Maryjane Malavasi and I participated in a ratings call with Fitch, the credit and bond rating agency,” said First Selectman Matthew Hoey on July 20. “I am pleased to report that they have re-affirmed our AAA rating, Fitch’s highest municipal rating. This positions our upcoming bond issuance favorably and drives our interest costs down.”
According to Fitch, the AAA rating reflects Guilford’s highest gap-closing capacity, sound revenue framework, and solid operating performance. A wealthy property tax base and manageable expenditure growth contribute to the town’s strong financial profile. Fitch expects long-term liabilities to remain low based on manageable capital needs and well-funded pension plans.
As a result of obtaining these ratings, Guilford taxpayers can expect to receive the best interest rates available in the market when the town issues bonds to finance capital projects in the upcoming weeks.
In its report, Fitch concluded that “the town is well positioned to manage the challenges associated with the current pandemic related economic downturn while maintaining the highest degree of financial and budgetary resilience. The town’s unlimited revenue raising ability and solid control over expenditures provide for a superior level of inherent budget flexibility. In addition, Guilford’s financial profile has strengthened, as evidenced by consistent surplus operating results and growing reserve levels, over the past eight years.”