West Hartford Maintains AAA Rating

West Hartford has maintained its coveted AAA credit rating and is one of seven communities in the state to hold the ratings from both Moody’s and Standard & Poor’s.

Both Moody’s Investor Services and Standard & Poor’s, the nation’s largest bond rating agencies, have assigned their highest ratings, Aaa and AAA, respectively, to the town of West Hartford’s $14 million General Obligation Bonds, Series 2016A, according to information provided by Town Hall.

The rating agencies also affirm the Aaa rating on the town’s $135 million of outstanding long-term debt.

This bond issue is for school and road improvements. The bonds were sold on Jan. 28 at one of the lowest true interest costs in the last decade.

“The Aaa long-term rating reflects West Hartford’s robust economy and sizeable tax base, favorably located just outside the state capital,” according to a statement from Moody’s Investors Service. “The rating also incorporates the town’s historically stable financial position with adequate reserve levels. Further, the rating factors in the town’s above average wealth and income levels, manageable pension and OPEB liabilities, and slightly elevated debt burden with rapid principal retirement.”

Read more from the press release below:

Standards & Poor’s report stated, “We consider West Hartford’s economy very strong. The town, with an estimated population of 63,464, is located in Hartford County in the Hartford-West Hartford-East Hartford, Conn., MSA, which we consider to be broad and diverse. The town has a projected per capita effective buying income of 148% of the national level and per capita market value of $134,830. Overall, the town’s market value was stable over the past year at $8.6 billion in 2016. The county unemployment rate was 6.9% in 2014.”

“The stable outlook reflects our view of West Harford’s very strong underlying economy as well as our opinion that the town will likely maintain what we consider its predictable operating profile and strong management practices and policies that contribute to strong financial performance and support very strong flexibility and liquidity. Debt service costs, as well as pension and OPEB costs, should remain manageable and not pose an immediate budgetary challenge over our two-year outlook horizon. As such, we do not expect to change the rating within the outlook’s two-year period,” the S&P report stated.

“I’m very pleased,” said Peter Privitera, Director of Financial Services, Town of West Hartford. “To be assigned a AAA credit rating from both Moody’s and Standard & Poor’s is a goal that all Cities and Towns strive for.”

Moody’s Investor Services and Standard & Poor’s are the nation’s largest financial rating agencies and their ratings are used for institutional investors, such a large banks and insurance companies, when bonds are sold. The AAA rating allows cities and towns to secure the best possible interest rate because they are considered low risk to lenders.