Moody's Investors Service said it has downgraded to Baa1 from A3 the rating on the town of Hamden, Conn.'s general obligation bonds, affecting approximately $145 million of outstanding debt.
The outlook has been revised to stable from negative.
Concurrently, Moody's has assigned a Baa1 rating to $125 million general obligation bonds, issue of 2015, (federally taxable). Post-sale, the town will have $270 million of outstanding GO bonds.
The Baa1 rating reflects the town's strained financial position characterized by very narrow reserve levels which have improved modestly over the last three years. In addition, the rating incorporates the severely underfunded pension system which will improve following this issuance. Further, the Baa1 incorporates the sizable, mature tax baseand an elevated debt burden which will almost double following the saleof these bonds.
