Hamden’s Bond Rating Upgraded By S&P Global Ratings

Press release from Town of Hamden:

HAMDEN, CT — Mayor Lauren Garrett recently announced that bond rating agency S&P Global Ratings has upgraded Hamden’s rating from BBB+ to A- with a positive outlook. S&P Global Ratings is an independent bond rating agency that evaluates our budgets, audits, performance, economic drivers, and long-term liabilities to rate our debt and ability to repay investors.

All three major ratings agencies have upgraded the Town this year. On May 14, bond rating agency Fitch improved Hamden’s rating from BBB to A- with a positive outlook (click here for Fitch’s press release). On May 24, bond rating agency Moody’s Ratings improved Hamden’s rating from Baa3 to Baa2 while also changing Hamden’s outlook from stable to positive (click here for Moody’s report).

These rating upgrades illustrate the progress the Town has made in financial management and will help the Town to lower its borrowing costs for all future bond issues.

S&P’s 2024 report states, “The rating reflects our view of Hamden's improving finances and approach to revenue and expenditure assumptions. Management implemented a comprehensive approach to developing revenue and expenditure projections and incorporating realistic revenue assumptions in its budget, which has led to improved budgetary performance and reserves over several fiscal years.”

“The positive outlook reflects S&P Global Ratings' view of Hamden's improved budgeting and stabilized finances and S&P Global Ratings' expectation that the town will likely sustain reserves during the next two years without relying on onetime budget measures, including pension deferrals, asset sales, or additional debt restructurings,” S&P’s report continues.

S&P’s report additionally notes, “The town has made full pension contributions for the past three fiscal years. Fiscal 2023 results produced a third-consecutive general fund surplus that increased available reserves to more than $36 million, supported by stable expenditures and an increase in revenue, including property taxes, state aid, and investment income.”

Click here to read the full report.

“S&P’s rating increase from BBB+ to A- with a Positive Outlook along with recent ratings increases from Fitch and Moody’s demonstrate the successful efforts we have made over the last three years to stabilize and improve our finances," Garrett said. "We will continue to focus on producing and managing fiscally responsible budgets as well as making improvements to our Grand List through Economic Development.”

This press release was produced by Town of Hamden. The views expressed here are the author’s own.