Darien receives Aaa bond rating
Published 4:52 pm, Thursday, August 7, 2014
The Town of Darien received a Aaa bond rating from Moody's Investors Services, just a week before the town intends to sell bonds.
"Moody's has affirmed the Aaa rating on $66.8 million of outstanding general obligation debt," according to the Aug. 7 Moody's release. "The outlook is stable."
Darien intends to sell $14.5 million in bonds to receive a more favorable rate, Darien Finance Director Kate Buch said.
The rating indicates the likelihood potential buyers will get their principal back from Darien.
Buch, who has been with the town since 1994, said the town has had a Aaa rating "for as long as I am aware."
Moody's establishes the bond rating based on a variety of indicators, such as the stability of the town's grand list, its fund balance and the fiscal management.
"They want to be sure that should an emergency occur, that (the town) could weather that emergency," Buch said.
By receiving the highest rating, Darien will receive lower interest rates on the bonds, Buch said.
"If we sold a $10 million bond on the same day that someone with a Aa rating did, we would get a lower interest rate," Buch said.
The town has $66.8 million in outstanding debt. Some of the debt stems from the renovations and additions to the police station, Darien High School and 35 Leroy Ave.
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