Joins Moody’s in reaffirming rating on Town’s outstanding debt
A second financial services agency has reaffirmed Huntington’s AAA bond rating on the Town’s outstanding debt, covering $80.9 million in general obligation bonds.
Fitch Ratings joined Moody’s Investors Service, which in April also upheld the AAA rating
on the town’s existing debt. In reaffirming the rating, Fitch cited “moderate” overall debt and debt service levels, the Town’s policy of rapid debt amortization (88 percent of outstanding debt is retired in 10 years) and the use of current revenues for ongoing roads maintenance to, as it noted, “maintain the Town’s low debt profile and giving the Town additional financial flexibility.”
Fitch noted that while the Town has drawn on reserves to balance the budget in previous years, those draws included expenditures for open space and park acquisitions, which, Fitch said it viewed as “a reasonable use of fund balance.” Fitch also noted that the preliminary 2015 budget does not envision drawing on fund balance in the general fund and that the savings from a planned early retirement incentive program will be used to replenish fund balances.
“I am gratified that Fitch continues to recognize that even in the face of difficult economic times, Huntington continues prudent management of its debt and that taxpayers and investors can continue to be confident in the Town’s fiscal policies,” Supervisor Frank P. Petrone said.