New Britain gets an A-plus bond rating

Published on Tuesday, 15 May 2018 20:39
Written by Skyler Frazer


NEW BRITAIN - S&P Global Ratings recently assigned its “A+” long-term rating to the city’s general obligation bonds.

S&P Global Ratings, a division of Standard and Poors Financial Services, reaffirmed the “A+” rating for the city’s 2018 general obligation bonds and its general obligation outstanding debt. In the document released May 4, the agency gave the city’s debt profile a “stable” outlook.

“I am pleased that S&P has reaffirmed our positive rating with an A+, citing our financial strengths upon the completion of this deal,” Mayor Erin Stewart said, referring to the city’s recent debt restructuring deal. “Once again we have been rated with a stable outlook further proving that we are making prudent decisions when it comes to how we are managing our debt and finances.”

In the document’s “rationale” section, S & P points to an adequate economy and strong fiscal management as reasoning for the reaffirming its previous rating.

In the outlook section, S&P said the city’s “adoption of more realistic budget assumptions,” is a positive.

“We do not anticipate changing the rating within our two-year outlook horizon as we believe it is likely that the city’s budgetary flexibility will remain strong and that the city will continue to pursue the goal of structural balance,” the report reads.

This rating change comes just a few months after Moody’s Investors Service downgraded the city’s general obligation debt rating from Baa1 to Baa2 while also downgrading its outlook from stable to negative. Moody’s has not released another update since that November change.

Posted in New Britain Herald, New Britain on Tuesday, 15 May 2018 20:39. Updated: Tuesday, 15 May 2018 20:41.