Moody’s Investors Service released its annual rating yesterday, Friday, May 6, awarding Wilton a triple-a (Aaa) rating for another consecutive year. Triple-A is the service’s highest evaluative level in its assessment of financial stability and credit worthiness.
A triple-A rating means Wilton falls into the category of towns with the “lowest level of investment risk.”
The rating assignment was announced prior to the May 12 expected sale date of $15.8 million in General Obligation Bonds, adding an evaluation of “stable outlook” to the notice. The majority of bond proceeds ($15 million) will finance the Miller-Driscoll School renovation project, and the remaining $800,000 will finance other town and school capital projects.
According to the announcement from Moody’s, “The Aaa rating reflects the town’s sizeable [sic] and affluent tax base, sound financial position, and manageable debt and pension burdens. The stable outlook reflects the town’s trend of stable financial operations with satisfactory reserves that are bolstered by strong management, conservative budgeting, and adherence to formal policies.”
In the press release, there were also factors listed as ones that could lead to a downgrade. Those included:
- Trend of operating deficits resulting in a material decline in reserve
- Significant declines in the tax base or deterioration of the demographic profile
- Material growth in debt burden
- Legal Security
UPDATE 3:20 P.M.—The article has been updated with a quote from first selectman Lynne Vanderslice.