Fitch Ratings has assigned a ‘AAA’ rating to $40 million of general obligation (GO) bonds, issue of 2022, to be issued by the City of Stamford, with a “Stable” rating outlook.
According to a new release from Fitch, the bonds are expected to sell competitively on July 27 and are being issued to provide financing for various city and school capital projects. Fitch has affirmed the ‘AAA’ rating on the city’s Issuer Default Rating (IDR) and outstanding rated GO bonds.
“The ‘AAA’ IDR and GO bond rating reflect Fitch’s expectation for Stamford to maintain healthy financial flexibility through future downturns, consistent with a history of strong operating performance and sound reserves,” said Fitch. “The city’s strong financial profile reflects its moderate fixed-cost burden, unlimited legal ability to raise revenues and a demonstrated ability to reduce expenditures during economic downturns. Fitch expects long-term liabilities to remain low as a percentage of personal income based on manageable capital needs and a commitment to full funding of its city-managed pension plans.”
Fitch added that the city’s “overall debt, including the current issuance, plus Fitch-adjusted net pension liabilities (NPL) are low at 5% of residents’ estimated personal income. Fitch expects the burden to remain low based on a manageable capital plan, a rapid pace of principal amortization, and city ordinances in place requiring full funding of its annual pension actuarially determined contributions (ADC).”
