Marlboro Township Assigned AAA Moody’s Bond Rating

MARLBORO, NJ - Credit rating agency Moody’s Investors Service recently assigned its ‘AAA’ long term rating to Marlboro Township’s general obligation (GO) bonds, according to an announcement from Marlboro Mayor Jon Hornik. The AAA designation is the highest rating assigned to issues of debt.

Moody’s serves as the second agency to assign their top rating to Marlboro after the S&P Global (S&P) upgraded the Township’s rating to AAA in 2017. As of April 6, only six municipalities (1 percent) in New Jersey were rated AAA by both Moody’s and the S&P.

“Marlboro’s credit remains the highest grade available in the marketplace”, Hornik wrote in a statement. “This means that our taxpayers continue to benefit from the lowest possible costs for road, parks and recreation and other capital improvements.”

In its report, Moody’s highlighted the Township’s sizable and growing tax base, strong residential wealth and income and growing reserves, as well as the township’s liquidity and manageable debt burden.

“This rating is a direct reflection of the Township’s conservative budgeting, maintenance of and
adherence to strong fiscal policies,” Hornik added. “The Township’s balance sheet continues to improve due to conservative budgeting and strong operating results. I want to personally thank Marlboro’s stellar Township Council, Business Administrator, CFO and hardworking employees for working as an amazing team to make this accomplishment possible.”

Moody’s upgraded Marlboro’s credit rating to AA2 in 2016. The S&P last reaffirmed Marlboro’s ‘AAA’ rating in 2019.

Moody’s made a special note of Marlboro’s leadership, noting that “governance is a key driver of this rating action as its management team is extremely proactive in managing township operations.”

“I am so proud that an outside independent rating agency recognized our work, which has involved a host of difficult decisions during challenging economic times,” Hornik responded. “These decisions which have ultimately resulted in a brighter fiscal outlook and the township council’s continued review of the township’s finances and involvement in the budget process have been critical to our success.”

As part of its review, Moody’s also reviewed the Township’s six year capital plan and noted Marlboro’s commitment to capital improvements going forward.

“We continue to make the case that investments in infrastructure, especially at a time of historically low interest rates is good policy, which is why we dedicated $5 million to road improvements in each of 2018 and 2019,” said Hornik. “Marlboro’s philosophy with respect to an active and managed capital program was validated in this rating review. The Aaa credit rating enables us to invest in our infrastructure at the lowest costs available.”