Release: Rating Agencies Affirm Milford's Prestigious ‘AA+’ Bond Rating

The following press release comes from City Hall

Once again, the City of Milford has received extremely positive feedback on its financial management and affirmation of high rankings from the three premier rating agencies.

Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s Rating Services described Milford’s finances as stable, prudent and healthy, Mayor Benjamin G. Blake reported Tuesday. He received reports this week which continue to confirm the ratings of recent years.

“We will continue to make conservative, prudent, common sense fiscal management our number one priority. But we will not rest – the city will look to continually improve every day,” said Mayor Blake.

Fitch rated Milford’s general obligation bonds ‘AA+,’ noting that “Management’s conservative budget practices and prudent debt policies provide for financial stability” in Milford.

The agency cited several key factors supporting the high rating: sound financial management, strong and stable reserves, moderate debt levels, well-funded retiree costs, and a history of successful access to the municipal bond market. Fitch also commended the City for its ongoing commitment to mitigate its other post employment benefit liability with its $3.7 million OPEB trust.

Similarly, Moody’s affirmed the City’s ‘Aa1’ rating, noting that it reflects the City’s “stable financial position with adequate reserves, and manageable debt profile.” Moody’s noted that over the last six years, Milford has maintained an adequate total general fund balance, averaging 10.6 percent of revenues and ending at 10.9 percent of revenues for fiscal year 2012.

In addition, Standard & Poor’s assigned its ‘AA+’ long-term rating to Milford’s general obligation bonds with a stable outlook. The ratings agency confirmed many reasons for the strong rating including: “adequate budgetary performance, very strong liquidity, adequate management environment, standard financial policies, and a very strong debt and contingent liabilities position.”