Chatham Township Retains AAA Credit Rating

CHATHAM, NJ - Moody's Investors Service has assigned a AAA to Chatham Township's $1.6 million Sewer Utility Bonds and says that in reference to the township's outstanding debt, the outlook is stable.

"This is a testament of the prudent financial management and fiscal responsibility of our local government," Mayor Tayfun Selen said. "Kudos to all of the current and past elected officials and township employees for their contributions to this achievement."

Selen was quick to note the rarity of this rating.

"In New Jersey only less than 5 percent of the local municipalities have the AAA rating and this high rating allows our municipality to borrow at a much cheaper rate than many others which is a direct benefit to our taxpayers," he said.

According to Moody's:

RATINGS RATIONALE

• The Aaa reflects the township's sizable and wealthy tax base, strong financial position, low debt but growing pension obligation.

RATING OUTLOOK

• The stable outlook reflects the expectation that the township's finances will remain strong in the near-term.

FACTORS THAT COULD LEAD TO AN UPGRADE

• Not Applicable

FACTORS THAT COULD LEAD TO A DOWNGRADE

• Material contraction of the tax base and wealth indicators
• Significant decline in reserves
• Material growth in long-term liabilities

LEGAL SECURITY

• The bonds are secured by the township's general obligation unlimited tax pledge.

USE OF PROCEEDS

• The bonds will be used to provide permanent financing for the township's outstanding sewer utility BANs in addition to providing an additional $519,000 in new funding.

PROFILE

• Chatham Township is located in Morris County (Aaa stable) approximately 25 miles west of New York City. The township's population is 10,528 according to the American Community Survey.

METHODOLOGY

• The principal methodology used in this rating was US Local Government General Obligation Debt published in December 2016.

More information can be found here.

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