Moody's Reaffirms New Canaan's Aaa Rating

Moody's: Moody's Investors Service has assigned a Aaa rating to the Town of New Canaan, Connecticut's $24.25 million General Obligation Bonds, Issue of 2019. We maintain a Aaa rating on the town's outstanding general obligation debt. The outlook is stable.

RATINGS RATIONALE
The Aaa rating reflects the town's large tax base and the affluent wealth and incomes of local residents. The rating also reflects the town's healthy reserve and liquidity positions supported by conservative budgeting. The rating also considers New Canaan's low debt, pension and other post-employment benefit (OPEB) liabilities and the town's pro-active management of its long-term liabilities.

RATING OUTLOOK
The stable outlook reflects our expectation that New Canaan will maintain balanced operations supporting its strong financial position over the outlook period.
FACTORS THAT COULD LEAD TO AN UPGRADE
- N/A
FACTORS THAT COULD LEAD TO A DOWNGRADE
- Material contraction of the taxable base or erosion of local resident wealth levels
- Structurally imbalanced operations leading to a deterioration of financial position
- Significant growth of the town's debt or pension burden
LEGAL SECURITY
The bonds are general obligations of the town, secured by an unlimited property tax pledge.
USE OF PROCEEDS
Approximately $9.6 million of the current issuance will be new money used for town and school capital improvements and $14.6 million will refund maturities from the town's series 2010, 2012B, 2013 and 2014A issuances for an estimated $1 million net present value savings.
PROFILE
New Canaan is located in Fairfield County approximately 45 miles northeast of New York City (Aa1 stable). The town is primarily residential and had an estimated population of 20,357 as of 2017.
METHODOLOGY
The principal methodology used in this rating was US Local Government General Obligation Debt published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.