A financial services firm on Thursday (April 24) upgraded the Town of Seymour’s credit rating, First Selectman Kurt Miller said in a prepared statement.
Manhattan-based Standard & Poor’s (S&P) upgraded The town’s long-term credit rating two levels from AA- to AA+, their second-highest rating, Miller said, crediting “years of effort” from town officials.
As a result, Miller said the town won’t have to pay as much to borrow money.
“Analysts for these companies use audits to assess the finances and the likelihood of default on any debt issued. According to S & P’s website, ‘A [AA] obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree,’” Miller’s statement said. “Seymour’s AA+ rating places it at the same level as the United States of America and one level higher than the State of Connecticut.”
S&P cited several reasons for the upgrade, among them “strong management practices, conservative budgeting practices, strong budget flexibility and strong debt and contingent liability position.”
Miller pointed to the town’s capital budget plan, improved debt service and the introduction of a Ten-Year Strategic Plan Committee as reasons for the upgrade.
“This really validates all the hard work we’ve done over the past two years,” Miller said in the statement. “I would like to thank everyone involved.”
“The rating upgrade reflects a higher degree of confidence in the Town and will result in lower borrowing costs for all future bond issues and create opportunities to refinance existing debt at lower rates,” said Barry J. Bernabe, senior vice president of the Government Banking Group at Webster Bank and the town’s financial advisor.
