Town of Madison Press Release

TOWN OF MADISON, CONNECTICUT

PRESS RELEASE

June 13, 2019

Today First Selectman Tom Banisch announced that Moody’s Investors Service recently affirmed the Town’s “Aaa” bond rating. The rating is the highest municipal bond rating available from Moody’s. In its recent credit opinion, Moody’s listed the Town’s credit strengths as its sizable tax base, strong resident wealth and income levels, stable financial position and low fixed costs and long-term liabilities. Moody’s forward outlook for the Town is stable based on the expectation that “the Town’s financial position will remain sound given managements’ commitment to maintain structural balance and adherence to formally adopted fiscal policies.”

In discussing the Town’s conservative budget practices and strong financial position, Moody’s noted that the Town’s “high reliance on stable property taxes and relatively low levels of state aid is a credit positive, especially in light of the state’s current fiscal challenges.” Madison is one of only 13 municipalities in the state and approximately 230 cities nation-wide that carry the highest rating from Moody’s.

“I am extremely happy that Moody’s recognized our prudent budgeting practices and strong financial management despite the current economic climate in Connecticut,” said Banisch. “I’m also aware that Moody’s cautioned that a ‘Significant increase in debt or capital needs’ is a factor that could lead to a subsequent downgrade. This accentuates our need to enact additional regulations to manage our debt and capital going forward.”

The rating was published in connection with the Town’s upcoming bond issue to finance renovations and an addition at the E.C. Scranton Memorial Library. The Town was assisted by Hilltop Securities Inc. in the obtaining the bond rating.