Mayor: City's Bond Rating Upgraded

NEW LONDON, CT — It's one notch. And the city will happily take it saying the bond upgrade from A+ to AA- saying it represents "remarkable" economic growth.

In a statement from New London Mayor Michael Passero's office, the news from Fitch Ratings he said mirror an "economic outlook that is the most positive in generations."

According to Fitch Ratings, the city's "one-notch rating upgrade to 'AA-' ...is driven by a combination of the city's strengthened budget management practices leading to improved liquidity levels along with a notable increase in the city's tax baseduring the most recent revaluation."

"Fitch believes these factors better position the city to manage through a future economic downturn," the company statement reads.

Passero's office said that the upgrade means New London’s rating outlook has been "revised to Stable from Positive, indicating that New London has fulfilled many of it’s projected economic opportunities as new developments and business growth have been realized. "

“Our city has been growing at a remarkable rate. We were one of the only cities to see our mill rate drop in 2019, bringing relief to our taxpayers without cutting city services and creating an economic outlook that is the most positive in generations,” Passero said.

“New London’s time is now, we will continue to draw new businesses and new investments to our city to support the economic future of our community.”

Fitch’s report examined a number of key rating drivers, including revenue and expenditure frameworks, long-term liability burdens and operating performance. In each category, New London demonstrated growth and improvement related to better real-estate appreciation and new construction that would add to the city tax base.

In addition, improved budgetary controls and policy changes have supported sound operating results over that past six financial years, and have restored budget reserves to solid levels.

“This report is another confirmation of New London’s healthy financial condition and continued growth,” New London Director of Finance David McBride said in a press release from Passero.

“Our city is fulfilling the promise of being a place where people want to live, work and invest," McBride said. "This upgrade to our bond rating will only propel that growth.”

Read the full Fitch Ratings announcement here.