East Hartford Maintains AA Bond Rating; Issues GO Bonds at Historically low 0.875% Interest Rate
EAST HARTFORD, CT – Mayor Marcia Leclerc today announced East Hartford has maintained its AA bond rating as assigned by S&P Global, which is the second highest bond rating it assigns. The Town has maintained the credit ratings by the rating agencies for the past several years. Mayor Leclerc also today announced the successful sale of $20 million in general obligation bonds at a historically low net interest rate of only 0.875%.
The Bonds will fund a variety of capital needs for the town including street paving along with other capital needs, town officials said.
According to S&P Global, “East Hartford’s AA stable rating reflects East Hartford's prudent financial management and stable economic base that have allowed it to perform well even amid the pandemic, past significant state aid uncertainty, and a slow-growing economy. It also reflects the town's low debt service carrying charge and a level debt schedule that is aggressive in its amortization. Furthermore, the rating recognized strong town management and the budgetary performance over the past three years where the town has consistently maintained very strong cash balances.”
Mayor Leclerc stated, ”Balancing the fiscal health of our community while maintaining the extensive high level of services the town provides especially during the significant weather events and a pandemic is a testament to the collective work of many. Strong leadership, cost containment, prioritizing our long-term liabilities, crafting reliable and honest budgets and our strong fiscal management was recognized in our ratings and will allow us to continue to successfully plan for our future.”
Linda Trzetziak, Director of Finance said, "This bond rating highlights the Finance Departments commitment to balancing the capital needs of the community with maintaining a stable debt service budget and meeting our long-term goals and objectives. “
The Town’s bond rating is AA Stable as issued by S&P Global Ratings of Boston on July 22, 2021. Town officials were very pleased both with the extensive number of competitive bids received and the related interest rates. Town officials believe that the number of bidders and the attractive rate offered to the Town on the bonds reflects their confidence in the Town’s leadership, management and financial stability of the Town.
The Town was assisted with this sale by its financial advisor, William Lindsay of Munistat Services, Inc. of Madison, and its Bond Counsel, David Panico of Robinson and Cole of Hartford, Connecticut.