Fairfield Maintains Aaa Rating, Refinances $24 Million

Fairfield’s Aaa rating has been reaffirmed and the town has refinanced $24 million in bonds, reducing the town’s interest costs going forward by approximately $1.45 million.

First Selectman Mike Tetreau recently announced that Moody’s Investors Service reaffirmed the town’s Aaa coveted rating and has given Fairfield’s finances a stable outlook.

Moody’s has assigned Fairfield with an Aaa rating to the town’s $29.2 million of General Obligation Bonds, Issue of 2015, and to $188.5 million in outstanding long-term general obligation debt.

“As a result of Fairfield’s strong financial management and budgeted surpluses, our town has been fortunate to see the positive results of five consecutive years of General Fund balance growth resulting in the total General Fund balance increasing to $22 million of revenues,” Tetreau said in a statement. “This balance growth has been the town’s highest level of fund balance since 2003.”

In addition, the town’s Bond Committee approved a proposal from Raymond James & Associates to purchase General Obligation Refunding Bonds, Issue of 2015, in the amount of approximately $24,240,000, which reduces the town’s interest costs going forward by approximately $1.45 million, according to Tetreau.

According to Moody’s Rating Report, which was issued on March 24, “Moody’s highest long-term rating incorporates a stable and improving financial position which is supported by formal policies and strong management, as well as controllable liabilities for debt, pension, and OPEB. The stable outlook incorporates our expectation that Fairfield will maintain superior credit quality given an improving financial position and a large, favorably located tax base with strong resident wealth levels.”

“This is great news for Fairfield,” Matthew Spoerndle, Senior Managing Director at Phoenix Advisors, the town’s financial advisor said in the release. “Consistently being awarded the rating agencies’ highest rating (Aaa) is truly a reflection of the town’s strong financial management which only enhances the anticipated interest cost savings with this refinancing.”

Spoerndle said the results of the bond refinancing was “exceptional.”

Fairfield CFO Bob Mayer said officials are “very happy with the results” of the financing efforts.

“Given the recent volatility in interest rates we are fortunate to have hit the market at a very opportune time,” he said.