Late Tuesday evening, First Selectwoman Lynne Vanderslice announced that Moody’s has once again assigned a triple-A (Aaa) rating to Wilton, CT’s $3.6 million general obligation bonds, issue of 2019. In addition, the town’s financial outlook was rated as ‘stable.’
According to the release issued by Moody’s, the investors service company, “…maintains a Aaa on the town’s outstanding general obligation debt. The Aaa rating reflects the town’s sizable and wealthy tax base, sound financial position and manageable fixed costs. The town provides municipal services and funds education for the town’s school [district].”
The triple-A rating is the highest possible rating issued by the company.
The company also explained its rationale for classifying the outlook as ‘stable,’ noting that the “…outlook reflects the expectation that the town’s financial position will remain sound, consistent with prior years, given conservative budgeting practices, formal policies and operating flexibility due to low fixed costs. Additionally, the town’s tax base will see moderate growth given new developments and will continue to benefit from very strong resident income and wealth levels.”
The ratings are used to indicate a bond issuer’s financial strength and likely ability to pay back bond principal and interest to investors on time. High ratings are desirable because they enable Wilton to borrow money for bonded projects at more favorable interest rates.
In her email, Vanderslice said she was pleased to report the announcement, and later told GOOD Morning Wilton, “Wilton is one of only 17 municipalities in Connecticut with a Aaa bond rating. We appreciate Moody’s continued acknowledgement of the years of strong fiscal management, which have allowed us to maintain our sound financial position and our manageable fixed costs that were noted in their rating rationale. Maintaining our Aaa rating is an ongoing priority for the Town.”
Board of Finance chair Jeffrey Rutishauser called the ratings announcement “excellent news.”