9/4/2018 - First Selectman Tesoro announces S&P Global Ratings and Fitch Ratings bond rating of AA+ to Trumbull
September 4, 2018 -- First Selectman Vicki Tesoro is pleased to announce that S&P Global Ratings and Fitch Ratings have issued a very strong and favorable bond rating of AA+ to the Town of Trumbull.
S&P Global Ratings states that the long-term rating reflects its view of the town’s very strong economy, strong management, strong budgetary performance, strong budgetary flexibility, and strong institutional framework. The report details several areas of improvement from last year, including increased percentage of available cash and lower percentage of debt.
The two reputable credit ratings agencies carefully review all pertinent financial documents and conduct meetings with Town Hall management before issuing a long-term bond rating. First Selectman Vicki Tesoro states, “I am pleased that our conservative approach to Trumbull’s budgetary needs is being recognized by the ratings agencies. A strong credit rating allows the Town of Trumbull to borrow money at a lower interest rate over a long period of time, and that is always good news for the people of Trumbull.”
S&P Global’s detailed report states, “We consider Trumbull’s economy very strong.” The agency specifically mentions the positive redevelopment projects underway in previously vacant commercial properties. Additionally, the report notes that Trumbull’s debt is upgraded from Adequate to Strong from last year. The ratings agency identifies the pension contributions as an important step to achieving this strong rating. The report states, “We believe the town has demonstrated a credible plan for addressing its outstanding liabilities,” and notes that the town’s new First Selectman will recommend an additional contribution to the pension plans over the Actuarially Determined Contribution (ADC) in this fiscal year. The ADC is also known the Actuarially Required Contribution (ARC). This commitment was critical to the favorable rating as an indication that the Town is serious about addressing these liabilities.
The Fitch Ratings report, which echoes the very favorable rating of AA+ to the Town of Trumbull, states that the bond rating reflects “Trumbull’s very high gap-closing capacity, solid expenditure flexibility and expectations that management will maintain its exceptional level of financial resilience to withstand future economic downturns.”
First Selectman Vicki Tesoro states, “This good news reaffirms that Trumbull is in good financial standing, but the work is not done. The Town’s pension liabilities continue to be the major contributing factor keeping us from attaining a higher credit rating. I have committed to the ratings agencies that I will continue to request that we make additional contributions to the pension plans over the ADC. We must continue to make sound budgetary decisions for every department and we must make our pension liability contributions a priority this year and every year.”