Oxford has retained its financial rating of Aa2 from Moody’s Investors Service Inc., according to First Selectman Mary Ann Drayton-Rogers.
That is third highest on a scale of 21 at Moody’s, according to a spokesman there in New York City.
In general, a good bond rating is like a good personal credit rating, and helps the town to borrow money at favorable rates of interest. It does not borrow money outright but repays municipal bonds that are issued for various building projects.
Drayton-Rogers said the bond rating was granted recently when the town refunded bond issues in the amount of $10.89 million.
The bond refinancing will save money in the long run, she said.
Moody’s has stated that the Aa2 rating takes into consideration the town’s rapid population growth — it is the fastest growing town in Connecticut — plus economic expansion and a relatively stable tax base.
It also considers the town’s manageable debt burden and satisfactory financial position, she said.
“Our consistent work to hold to sound financial management has resulted in Moody’s lauding our ‘conservative financial management practices which have resulted in stable fiscal operations and satisfactory reserve levels,” she said.
She said the ongoing goal is to improve the town’s reserve position and grow the commercial and economic development portion of the grand list while watching over spending practices.
The bond rating is the second good financial news Drayton-Rogers has been touting.
Earlier this month the town received word it will be reimbursed $48,489.68 from FEMA connected to major Jan. 2011 snowstorm.
