Solid Bond Rating Leads To Low-Interest Sale In West Hartford

WEST HARTFORD, CT — The two pre-eminent municipal bond rating agencies — Standard and Poor's and Moody’s Investment Services — have assigned their highest ratings, AAA and Aaa respectively, to the Town of West Hartford’s $15 million General Obligation Bonds.

Town officials made the announcement Thursday afternoon in conjunction with the bond sale. The outlook is stable, both S&P and Moody's said. The ratings for institutional investors like large banks and insurance companies. The Aaa/AAA ratings allow cities and towns to secure lower interest rates because they are considered low-risk lenders.

West Hartford Chief Financial Officer Peter Privitera said the Town received 12 bids at Thursday bond sale, with the lowest bid coming in at 2.005 percent.

"That is an excellent indication of the Town’s strong financial position,” Privitera said.

The bond proceeds will fund a variety of capital projects for the town and local school system, including street upgrades, stormwater management and school security and property acquisition for the new location of the Elmwood Community Center, town officials said.

Privitera added, "The affirmation of our AAA credit ratings with a stable outlook by both Moody’s and Standard & Poor's is a recognition of sound financial management, along with positive fiscal and economic attributes the Town possess.”

West Hartford Town manager Matt Hart said the ratings reflect "West Hartford’s vibrant economy, sound and conservative financial strategies, and long range plans for infrastructure improvements."

Mayor Shari Cantor was happy with the results.

"We are very proud and pleased to be awarded this prestigious distinction for our strong and solid fiscal strategies and management," she said. "Our 2021 Grand List increased by a remarkable 12.2 percent over last year. We saw increased values across the board; real estate property list is up 11.2 percent, the motor vehicle list is up 24.9 percent and the personal property list is up 10 percent. Home values remain strong and West Hartford continues to attract people from nearby major cities."

A Moody's report stated, "The Aaa rating reflects the town's substantially sized tax base and strong income indicators, which have both remained strong and not materially impacted by the pandemic. The town's key economic strength remains its robust local housing market that benefits from being equidistant from New York City and Boston."

An S&P report stated, "West Hartford has a very strong set of financial policies and controls that are institutionalized and embedded into its overall financial management, which, in our view, is a key factor contributing to its ability to sustain budgetary balance through various economic cycles. The town maintains a steady pace of modest economic growth as construction-related development has been largely unaffected by the pandemic, and the level of economic deterioration in the region is less severe than the national base-case forecasts."

Less than 1 percent of all municipalities nationwide earn the highest-possible ratings from Moody’s and S&P. West Hartford has maintained the top ratings consistently since 1974.