Fairfield Again Receives AAA Bond Rating From Moody's, S&P

FAIRFIELD, CT — Fairfield's solid financial standing has again led to Moody’s Investors Services and S&P Global Ratings agencies issuing a AAA rating for the third straight year, according to First Selectwoman Brenda Kupchick.

“The Town of Fairfield received another AAA rating from Moody’s Investors Services and S&P Global Ratings, which is great news for our taxpayers, and a tribute to our fiscal responsibility as a Town”, Kupchick said in a statement.

The AAA rating enables the Town to borrow money at a low rate, saving taxpayer dollars, something the town plans to put to the test in the near future.

Last week, the Board of Selectmen approved a measure for the town to refinance $15 million worth of bonds from 2012 and 2014 to capture about 3 percentage points of interest savings, a move that could put upwards of $400,000 back into Fairfield's coffers.

From Kupchick's announcement:

Moody’s reported, “Fairfield’s tax base and economy continue to be anchored by a strong housing market of high value homes benefitting from healthy demand. The economy also benefits from the institutional presence of several educational and medical facilities that are major employers and supported by a highly educated workforce characterized by strong wealth indicators. As a result, the well-sized tax base continues a rate of solid expansion that Moody’s anticipates will continue.”

S&P commented, “Conservative management with well-defined policies and practices, and a
strong institutional framework score” as well as a “strong debt profile with well-funded pension
plans” contributed to the rating.

The Town's annual bond and note sale was held on Wednesday, June 22nd, with First
Selectwoman Kupchick and members of the bond committee, Selectwoman Nancy Lefkowitz,
Town Treasurer Chris Tymniak, as well as CFO, Jared Schmitt.

Long-term bonds in the amount of $32,460,000 and short-term notes in the amount of
$8,090,000 were sold on the competitive market. Janney Montgomery Scott submitted the
winning bid for the long-term bonds, with a low interest rate in today’s market of 3.45 percent, which will help to reduce interest costs for taxpayers in future years. Fidelity Capital was the winning bid on the short-term bonds at the rate of 2.39 percent.

The proceeds from the issuance will provide much needed funding for schools, general purpose
and sewer improvements. There were several notable projects in this financing, including RLMS
Turf Field project, the Emergency Radio project, DPW Vehicles and Equipment, School Roof

Replacement and Bathroom Renovations, Tide gate projects, and numerous Capital Non-
Recurring projects for both the Town and School.

The Town’s Municipal Advisor, Matthew Spoerndle from Phoenix Advisors, said, “These are
outstanding results for the Town. The number of bidders and low rates is a testament to the
Town’s AAA rating and continued prudent financial management. Congratulations to the
Town!”