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FAIRFIELD, Conn. Two weeks before Standard & Poors knocked down the nation's credit rating, it renewed Fairfields top standing, leading to the towns lowest-ever interest rate. But during Congresss debt ceiling debate, another credit agency, Moodys, placed Fairfield on a watch list of AAA-rated towns in danger of slipping.
First Selectman Michael Tetreau said last week that the concept was frustrating. He said he was not satisfied with a conference call he had with representatives from Moody's and other Fairfield County town leaders.
It just didnt seem very well thought-out, Tetreau said. Frankly, I expect more of Moodys.
Though Moodys upheld the countrys AAA rating, it sent a letter last week to 162 AAA-rated towns across the country, including Fairfield, Norwalk, New Canaan, Westport, Greenwich and Darien. Moodys warned those municipalities that it questioned whether any town could hold a rating higher than the federal government.
Tetreau pointed out that Fairfield should eventually be deemed a lower risk than other towns across the country. For one, it collects its most of its money from property taxes, which are more secure than income or sales taxes. Fairfield also relies very little on federal funding, and few residents hold jobs supported by federal spending.
Tetreau also noted that the rating matters little for this year, since Fairfield has already sold its bonds at a record-low 0.19 percent rate. Were borrowing $43 million for the year, and were going to pay $78,000 to do it, he said. Thats not free, but its darn close.
Have any questions about credit ratings or other town government issues? Ask them in the comments below or email them to gcanuel@thedailyfairfield.com.
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