Local
Stamford achieves triple A bond rating
By Stamford Mayor's Office
May 9, 2008 - 3:25:38 PM

Stamford, CT – Mayor Dannel P. Malloy today announced that the City's triple-A credit ratings from both Standard and Poor's and Moody's Investment Services have been reaffirmed.

In reports issued this week, Standard and Poor's assigned Stamford a AAA rating with a stable outlook. The report cited Stamford's strong economy, stable financial operations and performance, and moderate debt burden as factors in the rating. The analysts were especially pleased with the City's increasing "rainy day" fund, the movement of the Smith House into the general fund, and our financial strength.

Moody's Investment Services assigned Stamford a Aaa rating with a stable outlook. They concurred with Standard and Poor's findings, and indicated they were impressed by the City's financial management team, well managed debt plan and strong economic activity.

Both rating agencies encouraged the City of Stamford to establish formal policies and procedures regarding building financial reserves for the General Fund and Debt Service,

The value of a triple-A rating is that it lowers the interest rate that the City pays on bonds that it issues. It also ensures that the City does not need bond insurance, which in this market is very expensive and adds to the cost of borrowing. In today's market the triple-A is extremely valuable,

The ratings were solicited by the City in advance of a competitive sale of $88 million in bonds including permanent financing of $47 million in Bond Anticipation Notes sold last spring and $41 million in new bonds needed to support Stamford's capital improvements projects.

"With our conservative financial operations and the activity in Stamford's economy, I was certain that our triple-A would be maintained," Mayor Malloy said. "Our extraordinary fiscal management by my Administration during a challenging economic climate ensured that we retained our triple-A rating, which we have earned every year of my tenure. This is significant for the citizens of our community because it allows us to make critical capital improvements at favorable interest rates."

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