Credit Rating Agency Rules on South Windsor's Financial Health

South Windsor had its financial rating of Aa2 reaffirmed by Moody’s Investor Service on Oct. 3, testifying to the agency’s faith in the town’s financial stability. The good news comes in part because the town added its $1.3 million surplus to its general reserve fund. 

According to Moody’s, the town has

• “-Strong financial management practices with a demonstrated commitment to maintaining satisfactory financial flexibility
• -Satisfactory tax base growth and continued development in commercial and industrial sectors
• -Above average wealth levels.”

The rating could be improved, the release from Moody’s states, if the town allocated more money to its general fund – similar to a rainy day fund for the town.

Though Moody’s says the equalized net grand list has declined slightly over the past five years, the credit rating agency expressed confidence in future economic growth.

“Numerous commercial developments are expected to be completed or begin within the next year, including continued development around the Promenade Shops at Evergreen Walk, a new FedEx distribution facility, a hotel, a luxury apartment complex, and CT studios…”

Town Manager Matthew Galligan said he’s pleased with the news but not surprised.

“I’m an accountant by trade and I take our financial condition very seriously,” Galligan said recently by phone. “It shows also that the council has been fiscally responsible and supportive of me. This town is cognizant that they have to keep their financial rating the highest they can.”

See the full release here.