New Haven – Mayor Toni N. Harp and Controller Daryl Jones today announced results of a recent bond rating agency review: New Haven earned an ‘A minus’ rating with a ‘stable’ outlook from both the Standard and Poor’s and Fitch rating agencies. The bond rating review precedes an imminent General Obligation bond sale set to occur on or about August 3.
“The presence of the city’s top two employers, Yale University and Yale New Haven Hospital, provides stability to the economy and continues to attract development and investment from biotechnology, pharmaceuticals and life-science companies,” according to the Fitch report. “Significant new developments have contributed to the city’s tax base growth and a number of projects are reportedly in the pipeline and are expected to increase employment opportunities in the city.”
“Additionally, deferred tax payments from properties receiving tax abatements are scheduled to be received in increasing amounts over the next several years,” the Fitch report added.
“These positive reports from bond rating agencies underscore the optimism about New Haven we know exists beyond the financial sector; technology companies, bioscience firms, and development interests all share a belief that New Haven is on a steady, positive trajectory,” Mayor Harp said. “I’m grateful to the city’s finance team and all managers in my administration for keeping the city’s fiscal house in order.”
“These results from S&P and Fitch will translate into lower borrowing costs this year’s sale of General Obligation bonds and those savings will directly benefit taxpayers who underwrite the city budget,” Controller Jones said. “New Haven’s financial standing is improving as a result of the sound management and strict controls that have been implemented – good news for property owners and business operators alike.”
The value of this year’s General Obligation bond sale will be just under $111 million.