Wilton maintains Aaa bond rating
Moody's Investors Service has assigned a Aaa bond rating to the Town of Wilton.
The rating is the town’s equivalent of a credit report score, and Aaa is the top rating a municipality can have.
According to a report on Moody’s website, the Aaa rating was assigned to Town of Wilton, CT's $3.6 million General Obligation Bonds, Issue of 2019, and reflects Wilton’s sizable and wealthy tax base, sound financial position and manageable fixed costs.
The report says Wilton’s stable outlook reflects the expectation that the town's financial position will remain sound, consistent with prior years, given conservative budgeting practices, formal policies and operating flexibility due to low fixed costs.
Additionally, the town's tax base will see moderate growth given new developments and will continue to benefit from very strong resident income and wealth levels, according to the report.
First Selectwoman Lynne Vanderslice announced the news in an email, saying, “I am pleased to share that Moody’s has reaffirmed our Aaa rating. In the rationale for the rating, they recognized our sound financial position and manageable fixed costs.”
Board of Finance chair Jeffrey Rutishauser said, “We are pleased that Moody’s reaffirmed Wilton’s Aaa bond rating, identifying the town’s sound financial management, conservative budgeting practices and operating flexibility in its Rating Outlook. This Aaa bond rating allows Wilton to issue bonds for capital projects at the lowest possible interest rates.”
The town’s website explains that an important factor influencing the cost of municipal bonding is the town's bond rating. Agencies assign a bond rating to municipal bond issuers reflecting the rating agencies’ level of confidence in the town’s ability to pay back the debt.
Ratings are alpha-numeric, the highest being Aaa. The higher the bond rating, the lower the relative interest rate and the higher the ratio of money available for capital expenditure rather than for servicing the debt.