Bond Rating Agencies Affirm West Hartford’s AAA rating
WEST HARTFORD, CONN. (October 17, 2005) – On October 1, both Moody's Investor Services and Standard & Poors, the nation’s largest bond rating agencies, have assigned their highest ratings, Aaa and AAA, respectively, to the Town of West Hartford’s $48.8 million general obligation (GO) bonds, Series 2005. Bond proceeds will be used to fund various capital projects related to the town’s Blue Back Square redevelopment plan including $13.5 million for site improvements, $11.4 million for a north garage, $11.1 million for a south garage, $5.8 million for a library expansion and $4.6 million for town hall renovations to accommodate the consolidation of the Board of Education offices in town hall.
The AAA rating reflects the town’s sound financial performance, conservative long-term planning, low debt burden, well above average wealth and income levels and a stable residential tax base. The 20-year bonds were sold October 12 at 4.25%.
“The town boasts a diverse economic base (70% residential, 17% commercial/industrial)
and is currently experiencing a robust level of building permit activity. This
[Blue Back Square] development should serve to reverse the relatively flat assessment
growth over the last ten years which incorporated the effects of the fiscal 2001
revaluation that resulted in an 8.2% decline that year (prior revaluation was
in 1991),” reported, Sarrah Angelos analyst, Moody’s Investor
Service.
“The stable outlook reflects the expectation of continued good financial
performance and position, evidenced in part by the maintenance of healthy general
fund reserve levels. The outlook is also predicated on continued economic stability.
Completion of major planned economic development projects, such as Blue Back
Square, stand to bolster the town’s tax base and property tax revenues,” stated
Baltazar Juarez, credit analyst, Standard & Poor’s.
"Blue Back Square has been overwhelmingly approved by the voters, it has
been approved by the courts, and it has been approved by the marketplace.
Now its financing has been approved by the two largest rating agencies. West
Hartford's
future looks very bright," said Scott Slifka, mayor of West Hartford.
West Hartford is one of 38 towns in the United States to hold the coveted Aaa / AAA ratings from both Moody’s and Standard & Poors. Even fewer have maintained such ratings since 1974, as West Hartford has.
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Sarrah Angelos, Analyst, Public Finance Group, Moody’s Investor’s
Service
(212) 553-0376 or epi@moodys.com
Baltazar Juarez,
Analyst, Standard & Poor’s
(212) 438-7999 or baltazar_juarez@standardandpoors.com
Barry Feldman, Town Manager, Town of West Hartford
(860) 523-3224
James Francis, Finance Director, Town of West Hartford
(860) 523-3220
