Moody's Assigns Aa2 To Teaneck, NJ's Bonds

Press release from the Township of Teaneck:

Aug. 24, 2020

Township of Teaneck

Municipal Building

Teaneck, New Jersey 07666

(201) 837 - 1600

FOR IMMEDIATE RELEASE: Moody's assigns Aa2 to Teaneck, NJ's bonds

Teaneck, NJ: 8 – 24 – 2020

Moody's Investors Service has assigned a Aa2 rating to the Township of Teaneck, NJ's $13.3 million General Improvement Bonds. Moody's maintains the township's Aa2 general obligation unlimited tax (GOULT) rating. In addition, Moody’s Investor Service, one of the nation’s largest bond rating agencies, recently reaffirmed the Township’s Aa2 rating citing its strong financial management team, its stable and structurally balanced financial operations, its strong socioeconomic profile and above-average wealth levels, and its substantial and diverse tax base with favorable location.

An Aa2 rating reflects the Township’s substantial tax base, strong and diverse economy, well managed financial operations, healthy reserve levels, and modest debt burden. In its summary, Moody’s said Teaneck has a history of strong management and conservative budgeting. The report went on to note that they do not see any material immediate credit risks for Teaneck; to date tax collections have remained strong and the township's finances remain strong. In addition, the township has adjusted its budgeting to manage its finances through the pandemic.

An Aa2 bond rating means the township has exceptional credit worthiness because the township can easily meet its financial commitments. The township can get the lowest interest rates when borrowing because an Aa2 bond rated government entity is viewed in the financial world of having the one of the smallest risk of defaulting on its debt. That equates to lower borrowing costs which allows for lower costs to finance capital projects.

This press release was produced by the Township of Teaneck. The views expressed here are the author’s own.