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NEW CANAAN, Conn. New Canaan received some good financial news on Wednesday with word that the town's bond rating has been upgraded. The change means New Canaan should enjoy more favorable borrowing terms in the future, First Selectman Rob Mallozzi III said.
Mallozzi announced that Moodys Investment Service has upgraded the towns Aaa bond rating from negative to stable. The negative rating had been issued by the investment firm on Aug. 4.
New Canaan strives to maintain its Aaa rating, as it directly affects our future borrowing costs and is an indication of our overall financial health, Mallozzi said in a statement issued late Wednesday.
New Canaan was one of 119 municipalities nationwide and two states whose ratings were restored to stable. Moody's downgraded the town's investment status following the assignment of a negative outlook to federal government's Aaa rating on Aug. 2.
"Today's actions are based on an expanded evaluation of the exposure each municipality has to the U.S. government, including economic sensitivity to federal spending reductions, dependence on federal transfers and exposure to capital markets disruptions," said Naomi Richman, Moodys managing director.
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