Guilford Receives Very Good Financial News From Bond Rating Agencies

GUILFORD, CT — Today, S&P Global Ratings and Fitch Ratings announced the affirmation of the Town’s AAA bond rating with a stable outlook going forward, town officials said in a news release. Those ratings represent the highest ratings awarded by each rating agency.

As a result of obtaining the ratings, Guilford taxpayers can expect to receive the best interest rates available in the market with the Town issues bonds to finance capital projects, officials said. The Town’s financial advisor, Independent Bond & Investment Consultants of Madison, estimates that the Town will save approximately $185,000 in interest cost on its upcoming bond sale as a result of the ratings, officials said.

In its report Fitch concluded that “Guilford’s strong financial resilience is supported by its conservative budget practices, strong reserve levels and superior level of budget flexibility.”

S&P referred to the Town’s financial management as “strong” and based the stable outlook on the opinion that “the town will maintain at least a strong financial position through conservative budgeting practices and balanced operations.” S&P cited the “diverse and dynamic” local and regional economies as providing support for the rating and said it was unlikely that it would revise its rating over the next two years.

The ratings were obtained in connection with the Town’s upcoming $7 million bond and $12 million short-term note sale. Proceeds of the sale will finance $13.6 million in school facility improvements, including the final installment for the High School project, as well as $5.4 million in town infrastructure projects and vehicles/equipment purchases.