Moody's Investors Service said it has upgraded to Aa1 from Aa2 the Borough of Mendham's (Morris County, N.J.) general obligation bond rating, affecting $4.553 million of outstanding parity debt obligations.
The bonds are secured by the borough's unlimited property tax pledge.
The Aa1 rating reflects the borough's moderately-sized tax base with high-value housing stock, above-average resident wealth levels, and modest debt burden.
The upgrade reflects the borough's demonstrated prudent budgetary practices that resulted in strong and well above-average reserve and liquidity levels. Mendham also maintains healthy reserves in other funds, providing additional financial flexibility in the event of budgetary shocks due to changes in the economy or political landscape.