Rating Agencies Fitch, Moody’s and Standard& Poor’s Keep Huntington’s Bonds at AAA

Fitch, Moody’s and Standard & Poor’s all maintain Town at highest level

All three major ratings agencies – Fitch, Moody’s and Standard & Poor’s – have again maintained the Town of Huntington’s AAA bond rating, affecting the Town’s $95 million in outstanding bonds and a $12.9 million bond sale planned for the week of November 30.

There was no change in the rating or the outlook issued by all three agencies. Standard & Poor’s singled out as contributing factors “very strong management,” “strong budgetary flexibility” and “very strong liquidity.”  Its report noted, “We view the Town’s management as very strong, with strong financial policies and practices under our financial management assessment methodology, indicating financial practices are strong, well embedded and likely sustainable.” The firm noted it expected the Town to maintain the AAA rating for the next two years.

Moody’s said the rating “reflects the Town’s still satisfactory financial position with currently healthy reserves…and low debt and pension burden. And Fitch noted, “The Town’s debt is low on a market value basis and amortizes very rapidly. Fixed costs are moderate and capital plans are reportedly limited.”

Both Moody’s and Fitch also noted that the Town is addressing a situation they said could be cause for concern – the drawdown of reserves. Fitch noted that the Town is not planning on drawing from general fund reserves in 2015 and expects to finish the year with a surplus that could be used to replenish reserves. Moody’s also noted that the Town’s five-year forecast indicates a reduction in annual reserve appropriations.

“We are gratified that the rating agencies continue to recognize how well the Town has navigated the waters in continuing tight financial times,” Supervisor Frank P. Petrone said. “As all the agencies noted, the Town limits its borrowing, but when we do, these AAA ratings help the Town obtain the most favorable interest rate, saving money for Town taxpayers now and well into the future.”