Bond Rating Agencies Affirm West Hartford’s AAA rating
WEST HARTFORD, CONN. (January 30, 2008) -- The town of West Hartford has done it again! Both Moody's Investor Services and Standard & Poor's, the nation’s largest bond rating agencies, have assigned their highest ratings, Aaa and AAA, respectively, to the Town of West Hartford’s $15 million general obligation (GO) bonds, Series 2008A. The rating agencies also affirmed the top rating on the town’s outstanding general obligation debt, affecting $145.9 million in bonds. Bonds were sold today, January 30, 2008.
The Series 2008A bond proceeds will be used to fund various capital projects, the largest of which is for street improvements and upgrades to the police station. The town's updated 12-year (2008-2019) Capital Improvement Program totals $169.7 million. The bulk of the plan, $133.4 million (67%), is for general town projects, including repairs, replacements, or improvements to streets, sidewalks, sewers, communication equipment, and recreation facilities. Another $56.3 million is for school-related improvements. The town expects to finance most of the plan, approximately $134 million (79%), with future debt within the parameters of its debt management policy. For school-related projects the town expects to receive between 25% and 35% in state grant payments.
“The ‘AAA’ rating on the Town of West Hartford’s series 2008A and outstanding GO bonds reflects the town’s affluent and stable residential property tax base, well above-average wealth and income levels, historically sound financial performance and conservative long-term planning and low debt burden with manageable future capital needs,” stated Baltazar Juarez, credit analyst, Standard & Poor’s. (Click here to read the full report)
Moody's believes that the town's consistently stable financial position will be maintained largely due to the policies followed by a seasoned management team. West Hartford has conservative budget practices, specifically in regards to investment earnings, property tax collection assumptions, and anticipated state aid grants -- coupled with strict spending controls. Reflective of West Hartford's proactive nature, the town is addressing energy costs to mitigate future expenditure pressures. (Click here to read the full report)
West Hartford is one of only a few towns in the United States to hold the coveted Aaa / AAA ratings from both Moody’s and Standard & Poor's. Even fewer have maintained such ratings since 1974, as West Hartford has.
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