FOR IMMEDIATE RELEASE

City of Stamford

Tuesday, July 19, 2022

Contact:

Lauren Meyer

203-977-5115

lmeyer@stamfordct.gov

CITY OF STAMFORD’S TRIPLE AAA BOND RATING REAFFIRMED BY FITCH AND S&P

STAMFORD, CT – The City of Stamford’s “AAA” bond rating has been reaffirmed by credit rating agencies Fitch and Standard & Poor’s (S&P). This is the highest bond rating possible for both agencies.

“I am pleased to announce that Stamford has been awarded the highest credit rating possible – a AAA rating – which reflects our City’s fiscal health and sound fiscal management,” said Mayor Caroline Simmons. “I want to thank Director of Administration Sandy Dennies, our budget team, members of my cabinet, and city employees for their hard work and commitment to fiscal sustainability. I expressed to our rating agencies my commitment to implementing responsible budget practices, reducing our debt, and securing more state and federal funding to reduce the burden on Stamford taxpayers.”

In the coming weeks, the City of Stamford is planning to issue $40 million of bonds to finance various capital improvements for the Board of Education, public safety, and roads. Prior to selling bonds, the City needed to have its credit rating reviewed by both S&P and Fitch.

Rating metrics that allow for the AAA rating include strong management practices, a sizable, diverse, and growing grand list, strong financial budgetary discipline, and moderate debt levels.

The S&P report highlighted that the City’s “financial position is at its strongest level as it heads into fiscal year 2023 and it is not forecasting for any meaningful draw on its available general fund reserves; the stable outlook reflects its ability to maintain strong budgetary performance even amid a challenging economic environment due to its prudent budget monitoring and planning.” 

Although interest rates have been increasing, the AAA bond ratings will allow the City to borrow funds at the lowest possible rate in the current interest rate environment. The City’s aggressive amortization of existing debt service will allow for the new bonds to slot into the budget with no impact on the current debt service budget.

In order to receive a rating, the Mayor and the City’s financial team had to present a comprehensive overview to the rating agencies, that covered finances, debt service, long-term liabilities, economic factors, cyber security mitigation efforts, and budget flexibility.