Moody’s, S&P
Both Reaffirm “AAA Stable” Status
Huntington
– Supervisor Chad A. Lupinacci credits Huntington’s recently renewed AAA
bond rating by Standard & Poor’s and Moody’s Investors Services for the
Town’s recent refinancing move that saved taxpayers over $275,000.
“The
agencies’ analysis and recognition of Huntington’s fiscal practices with the
AAA stable rating allowed the Town to refinance outstanding bonds at a
significantly lower rate,” said Supervisor Lupinacci. “This move saved
taxpayers at least $275,000 over the next six years.”
The bond
sale occurred on September 27, 2018. The Town received a total of six bids by
underwriters and the winning bidder was Raymond James with a True Interest Rate
of 2.12%, retiring the original bonds yielding approximately 3.7%. The timing
of the sale was fortunate as interest rates have risen since the day the rates
were locked in.
In
addition, the Town sold $10,500,000 in bonds to provide original funding for
various public improvements including the James Conte Community Center,
Halesite Park bulkhead reconstruction, road improvements and other projects as
set forth in the Town’s Capital Plan. The Town received seven bids and the
winning bidder was UBS Financial Services. The AAA bond rating allowed the Town
to finance this issue at a True Interest Rate of 2.88% for fifteen years.
Standard
& Poor’s and Moody’s Investors Services maintained the Town of Huntington’s
AAA bond rating in reports issued on September 21, 2018. Huntington is one of
the few Towns rated by both agencies.
"The
stable outlook reflects S&P Global Ratings' opinion of Huntington's very
strong economy," the S&P Global Ratings' report stated, citing their
reasoning as to why they expect to maintain Huntington's AAA rating for the
next two years: "We believe strong management practices and policies
underpin Huntington's commitment to maintaining structural balance and strong
available reserves, providing additional stability."
Moody's
Investors Service issued Huntington's AAA-rating, citing the Town's
"improved financial position," stating the "town's debt burden
remains below the median for similarly rated credits," and "the town
maintains a low pension liability." The report issued a stable outlook for
Huntington due to its "expectation of continued economic stability"
and "projected financial stability given the town's intent to maintain
reserves at current levels."
###