New Haven – Mayor Toni N. Harp and Controller Daryl Jones today announced clear-cut, upbeat news from the Standard and Poors rating agency to underscore confidence in the city’s financial standing. The updated S&P rating information is timely and useful, just ahead of the city’s planned sale of Tax Anticipation Notes (TANs).
According to Standard and Poors Global Ratings, New Haven was rated ‘SP-1’ and earned an A- rating with a Positive outlook in its General Obligation pledge as security for the 2017 TANs. In addition, S&P wrote how the city demonstrates, “very strong projected coverage at the time of the notes’ maturity.”
“Despite persistent uncertainty about the state budget, this news reinforces New Haven’s financial stability and signals to the entire financial sector that the city remains a sound investment with solid financial policies in place,” Mayor Harp said. “City residents, property owners, and business operators should take pleasure in this recognition by an industry giant of New Haven’s responsible, capable fiscal stewardship.”
“This TAN sale will help the city meet short-term cash flow needs, accentuated this year by a seven percent increase in actuarially determined pension contributions, due next month in a lump-sum payment of $45.9 million,” Controller Jones said. “The decision to make that one payment instead of four will save the city $1.5 million.”
Jones said the city’s positive S&P rating will attract investors to the TANs and advance New Haven’s reputation in investment circles about the city’s strong financial foundation.