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Posted on: July 13, 2021

Financial Rating Agencies Reaffirm City’s Top-Tier Bond Rating

Norwalk Mayor Harry Rilling announced today that the City of Norwalk received confirmation that the three major rating agencies, Moody’s Investors Service, S&P Global Ratings, and Fitch Ratings each have reaffirmed the city’s “Triple A” bond rating with a stable outlook as Norwalk emerges from the COVID-19 pandemic. The Aaa rating from Moody’s and the AAA ratings from S&P and Fitch represent the highest ratings awarded by each of these agencies. The AAA ratings were assigned before the City’s bond sale scheduled for this Thursday, July 15, where about $46 million Series A tax-exempt and $46 million Series B taxable bonds will be issued. Proceeds will be used to fund capital projects and replace higher interest rate loans, which will result in taxpayer savings. 

“It is welcome news that we once again received these top-tier financial ratings. Thanks to fiscal responsibility, strong management, and healthy reserves, we are well-positioned to emerge from the COVID-19 pandemic with minimal fiscal impact,” said Mayor Rilling. “We charted through some unprecedented waters over the last 16 months, and I am proud that we kept services, programs, and projects running at a high level. As a result of our strategic planning and conservative budgeting over the last several years, we are able to continue to move forward with much-needed projects despite a global pandemic. Norwalk is on the move as we continue to make future investments in our community.” 

The rating reports issued by the three credit rating agencies present a thorough, objective, and independent analysis of the city’s financial operations and credit strength, with each commenting on the City’s flexibility moving forward.   

Moody’s Investors Service states, “The Aaa rating reflects Norwalk's sizeable tax base, supported by diverse taxpayers and employers and ongoing residential and commercial development. It also reflects the city's sound financial operations and healthy reserves and liquidity, which are the result of conservative fiscal practices and reliance on stable property taxes.” 

S&P Global Ratings states, “The rating is supported by the city's very strong economy, with a growing and wealthy tax base…We believe the city's positive financial operations over the past several years and improved reserve position, backed by very strong management conditions and manageable retirement costs and liabilities, provide additional rating stability. The stable outlook reflects our view of the city's very strong budgetary flexibility, conservative budgeting, and very strong management conditions.” 

Fitch Ratings states, “Fitch expects the City of Norwalk will maintain healthy financial flexibility throughout economic cycles, consistent with a history of strong operating performance and sound reserves.”

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