CITY’S CREDIT RATING AFFIRMED BY ALL THREE AGENCIES
(2/3/2010) NEW HAVEN- Mayor John DeStefano, Jr. announced today that in advance of the City selling $50.4 million general obligation bonds on February 4, the City has received affirmation of all existing ratings from the three major bond rating agencies. Each rating also achieved a stable outlook.
The rating affirmations are as follows:
Standard and Poors: A-,
Moody’s Investors Service: A3 (A- equivalent) and
Fitch Ratings: A-.
Standard and Poors referenced the following in their support for the City’s ratings:
“The rating reflects Standard & Poor's view of the city's:
•Stable economic base bolstered by a strong higher education presence (Yale University and others), health care, pharmaceuticals, and a growing biotechnology industry;
•Large, growing, and very diverse property tax base;
•Satisfactory financial performance supporting adequate reserve levels; and
•Stable management, with a focus on long-term planning.”
The rating announcements are the result of several days of analysis and conferences between staff and each rating agency in consultation with City Budget and Finance Staff. DeStefano applauded the work of the Office of Management and Budget and Finance in achieving these favorable ratings. “These ratings reflect a level of confidence in the City and its ability to manage its finances effectively in one of the deepest recessions in the history of the Nation,” said DeStefano. “Despite the challenges of the economy we continue to work effectively and diligently to grow our economy and develop New Haven’s economic future.”
Given the negative long-term outlook associated with the State’s recent bond rating, City Finance Officials were pleased to have ratings with a stable outlook. Each rating agency cited the effective use of monthly financial reports and action plans to address revenue or expenditure imbalances.
“The use of the monthly financial reports and action plans enables the City to adjust its budget plan throughout the year and has been a major reason why the City has consistently been able to effectively manage its budget,” said Lawrence D. Rusconi, Director of the Office of Management and Budget. “This strategy has achieved six consecutive operating surpluses (Fiscal Years 2004-2009).”
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