Norwalk receives AAA bond rating

On August 22 Norwalk Mayor Harry Rilling announced that the City of Norwalk had earned a AAA bond rating with a stable outlook from both Moody’s Investors Service and S&P Global Ratings. That is the highest possible rating a municipal government can receive.

“I’m happy to report that the major credit rating agencies have reaffirmed our ‘AAA’ bond rating, and that Norwalk has, once again, established itself as a financially responsible City,” said Mayor Rilling. “Norwalk’s track record of strong fiscal management, smart budgeting practices, and maintaining a solid Rainy Day Fund all contributed to our ‘AAA’ bond rating. Receiving a ‘AAA’ bond rating year after year helps us financially plan for the future by alerting investors that Norwalk is a responsible and financially stable City in which to invest.” 

A sale of Norwalk bonds is scheduled for Tuesday September 3, with a planned pricing of $70 million par value for 2024 General Obligations Bons and $15 million par value for General Obligation Bond Anticipation Notes. Both issues will be used to fund city capital projects.

“The ‘AAA’ rating reflects many years of a commitment to the City’s strong financial stewardship,” said Jared Schmitt, Chief Financial Officer of the City of Norwalk. “This achievement underscores our ability to manage resources effectively, ensuring long-term stability and the capacity to continue making wise investments in projects throughout the City. Our finance team and our partners in all City departments remain dedicated to a standard of excellence in our service to the residents of Norwalk.” 

“The AAA rating reflects the City of Norwalk’s robust local economy, characterized by a competitive residential market and a healthy, stable commercial market, both of which are supported by the city’s proximity to New York City and the strength of the southern Connecticut region generally,” explained Moody’s Investors Service. “The city’s financial operations will remain stable, with the city projecting a modest surplus for 2024. Norwalk’s leverage position includes moderate long term liabilities, fairly low fixed costs and strong funding of its OPEB liabilities.”

Meanwhile, S&P Global Ratings said “The rating reflects our opinion of Norwalk’s affluent property tax base with consistently positive budgetary performance, coupled with very strong reserves, liquidity, and manageable fixed costs… Overall, due to existing strong economic indicators and a high number of projects underway, which should lead to further tax base increases, we think Norwalk’s local economy will likely remain very strong.”