Oxford First Selectman George R. Temple announced today that Moody’s Investors Services of New York on Monday affirmed the town’s bond rating at Aa2.
The Aa2 rating incorporates the town’s relatively stable tax base which experienced rapid population growth and economic expansion over the past ten years.
The rating, according to Moody’s, also factors in the town’s manageable debt burden and satisfactory financial position. The rating, according to Moody’s, shows “conservative financial management practices which have resulted in stable fiscal operations and satisfactory reserve levels,” and “stable tax base with above average wealth levels.”
Moody’s said the town’s rating could improve in the future if there is improvement to the town’s reserve position and a strengthening of the tax base and demographic profile to levels more consistent with an increase in economic development.
The rating could go down if there were “protracted structural budget imbalance resulting in a depletion of General Fund balance,” and “inability to maintain reserves within internal targeted levels for a protracted period of time.”
First Selectman Temple said of the rating, “I am pleased but not content with the town’s rating. It is clear from the Moody’s report that they were disappointed in our grand list expansion. It is my goal to expand that list and enhance our Moody’s rating.”
Finance Director James Hliva noted that the rating had remained stable in adverse economic times. The projection for the current fiscal year will end in a surplus and return the town to a fund balance in excess of 10 percent, as is recommended by Moody’s, he said.
An Aa rating is the second best rating given by Moody’s. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. The modifier 2 indicates a mid-range ranking.