Moody’s awards Aaa credit rating to New Canaan
NEW CANAAN — The town has again been awarded Aaa tax rating by Moody’s Investor Services — the top rating the agency gives — along with a “stable outlook.”
“I think what’s important is what’s been repeated: ‘strong management supported by a fund balance policy.’ That’s very important to Moody’s and we’ve continued to do that,” First Selectman Robert Mallozzi III said. “We’re very conservative about the way we run the town and the way we handle our funds.”
According to the report, the stable outlook reflects an expectation that the town will continue to maintain its affluent tax base, stable financial position, and manageable level of long-term liabilities.
The report cited New Canaan’s strong management, fund balance policies, sizable tax base with extremely high wealth and income levels, and favorable location in Fairfield County, plus healthy reserves and modest liability for pension and other post-employment benefits, the benefits that an employee begins to receive at the start of their retirement.
All of New Canaan’s $9.3 million general obligation bonds were assigned the rating.
In terms of what Moody’s looks for when assigning ratings, Mallozzi said, “It’s just responsible governing, responsible policies.”