Moody's: New Canaan financial outlook 'stable'
Updated 11:46 am, Wednesday, May 7, 2014
Moody's Investors Service has assigned a Aaa rating to the Town of New Canaan's $15.3 million general obligation bonds, according to a news release issued by First Selectman Robert Mallozzi Wednesday morning.
"Acknowledging New Canaan's affluent residential tax base, manageable debt position, modest pension, and (other post-employment benefits) liabilities and strong financial management, Moody's Investor Service reaffirmed New Canaan's Aaa debt rating," Mallozzi wrote.
According to Moody's, "the outlook is stable," which reflects the expectation that the town "will continue to prudently manage its financial operations and maintain ample reserve levels."
The bonds are secured by the town's general obligation unlimited tax pledge. Proceeds from the current bonds are being used to finance $12.5 million for design and construction costs for the new Town Hall facility, as well as $2.3 million for road improvements and $500,000 for the firehouse renovations, according to a Moody's news release.
The agency added that "positive operations mark the fifth in the last six fiscal years and were driven by conservative budgeting practices, as well as unbudgeted FEMA revenues and special education excess cost grants from the state."
"I am delighted that Moody's has once again recognized the strong financial management myself and our finance team has dedicated ourselves to and has affirmed its highest rating on New Canaan's debt," Mallozzi said in the release. "As we go to the market next week with our $15.3M offering, we are reassured that this will allow the town to be the beneficiary of strong demand and lower interest rates."