NORWALK, Conn. -- Three major rating agencies have reaffirmed Norwalk's top-notch credit rating in advance of a $35 million bond sale next week that will pay for new school construction among other upcoming capital projects.
Mayor Harry W. Rilling announced Thursday that Moody's Investors Service, S&P Global Ratings and Fitch Ratings each again had given the Norwalk "Triple-A" bond ratings with a stable economic outlook going forward.
The Aaa rating from Moody's and the AAA ratings from Standard & Poor's and Fitch -- the highest ratings awarded by each of the agencies -- will allow the city to borrow money at the lowest-possible interest rates when borrowing money, saving taxpayers hundreds of thousands of dollars.
"The Aaa rating from Moody's and the AAA ratings from Standard & Poor's and Fitch represent the highest ratings awarded by each of these agencies," Rilling's office said in a statement. "As a result of carrying the best credit rating available, Norwalk taxpayers are assured of receiving the most favorable interest rates available in the market when the city issues bonds to finance capital projects."
For the bond issuance, which is set for next Tuesday, the city expects to save $781,000 in interest expenses as compared to if held a lower 'double A' rating, according to the Norwalk Department of Finance.
Standard and Poor's concluded that Norwalk has "strong financial policies and practices" and said it is unlikely that it would revise its rating over the next two years.
Moody's said its Aaa rating reflects the city's "healthy financial position and improving fund balance, supported by comprehensive fiscal policies, conservative management practices, as well as manageable debt and pension burdens. The rating further considers the city's strategically positioned local economy and stable sizeable tax base supported by a significant development pipeline."
Fitch predicted, "the city will continue to maintain strong reserves levels throughout an economic cycle given its historically stable revenue performance, high degree of inherent budget flexibility, and demonstrated commitment to maintaining sound reserves."
The bond sale next week will pay $20,867,330 in city capital projects, $8,477,470 in school projects, and $5,655,200 for urban renewal/redevelopment projects, according to officials.
The school projects include the expansion of Ponus Ridge Middle School and construction of a South Norwalk School at the Nathaniel Ely site.
"All Norwalk residents, city management along with elected and appointed officials can take pride in Norwalk's superior credit rating, which is now being put to good use as it invests in important city infrastructure, urban renewal, facilities and school construction projects," Rilling's office said.
