Stamford Reaffirms AAA Bond Rating by S&P And Fitch Ratings

STAMFORD, CT — Mayor David Martin announced in a news release on Thursday that credit rating agencies Standard & Poor’s and Fitch Ratings have reaffirmed the City of Stamford’s “AAA” bond rating.

"This is the highest credit rating possible for any City, and is largely attributed to the City’s robust economic development, strong management, control of fixed costs and budgeting competency," the news release said.

According to the announcement, Stamford was recognized specifically for their proactive identification of potential issues affecting finances through their annual budget preparation during the pandemic. The city currently maintains a surplus in city operating results in the general fund of 2.1% of expenditures, and slight surplus results across all governmental funds of 1.2% in fiscal 2020 and is estimating another general fund surplus in 2021.

"The economic impact of COVID-19 on our community required many difficult budgetary decisions in order to keep our City running at such a high standard," Martin said in a news release. "I am pleased to announce that S&P has reaffirmed Stamford’s financial stability and recognizes our thriving economy after a period of such great uncertainty."

The S&P report released on July 20 also takes into account environmental, social, and governance factors when determining their rating, the news release said. The agency established Stamford as a city with “strong management” due to its substantial proactive measures in addressing potential risks. These measures include coordinated response to pandemic induced economic factors, local climate resilience, and strong relationships with local businesses.

"The past 18 months have served as a shining example of Stamford’s resilience," Martin added. "Despite the many challenges of the global pandemic, we continue to be in a period of economic recovery. I attribute much of the credit to our incredible Director of Administration Sandy Dennies for overseeing the City’s financials and the City Boards for supporting and approving our budgetary priorities each year."

According to the news release, S&P has determined that Stamford continues to see steady growth in its taxable base, spurred by a healthy mix of residential and commercial development. Overall, Stamford’s market value grew by 1.5% over the past year to $31.4 billion in 2021. Prior to the pandemic, more than 3,100 residential units were under construction or approved by the City to begin construction.

Stamford also has almost 16.5 million square feet of commercial property, with about 1.2 million square feet of leasing activity, according to the news release. According to Fitch’s report, "Stamford is the state's largest business center and has a strong and diverse business base, including a high number of national and international corporate headquarters."

Stamford was able to make budgetary modifications and implemented cost-containment measures during the economic deterioration of 2020, the news release said. According to Fitch, "the city has adequate controls over employee headcount and wages, and has demonstrated the flexibility and willingness to cut spending during economic downturns."