NEW BRITAIN - S&P Global Ratings recently assigned its â€śA+â€ť long-term rating to the cityâ€™s general obligation bonds.
S&P Global Ratings, a division of Standard and Poors Financial Services, reaffirmed the â€śA+â€ť rating for the cityâ€™s 2018 general obligation bonds and its general obligation outstanding debt. In the document released May 4, the agency gave the cityâ€™s debt profile a â€śstableâ€ť outlook.
â€śI am pleased that S&P has reaffirmed our positive rating with an A+, citing our financial strengths upon the completion of this deal,â€ť Mayor Erin Stewart said, referring to the cityâ€™s recent debt restructuring deal. â€śOnce 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.â€ť
In the documentâ€™s â€śrationaleâ€ť 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 cityâ€™s â€śadoption of more realistic budget assumptions,â€ť is a positive.
â€śWe do not anticipate changing the rating within our two-year outlook horizon as we believe it is likely that the cityâ€™s budgetary flexibility will remain strong and that the city will continue to pursue the goal of structural balance,â€ť the report reads.
This rating change comes just a few months after Moodyâ€™s Investors Service downgraded the cityâ€™s general obligation debt rating from Baa1 to Baa2 while also downgrading its outlook from stable to negative. Moodyâ€™s has not released another update since that November change.