A bond rating agency gave the city a “positive” rating just in time for the sale of tax anticipation notes (TAN).
In a release late Wednesday afternoon, the Harp administration called the rating from Standard & Poor’s “clear-cut, upbeat news” that underscore[s] confidence in the city’s financial standing.” S&P Global Ratings gave New Haven an ‘SP-1’ designation and an A- rating “with a positive outlook” for the upcoming TAN scale.
Local governments issues TANs to finance operations short term in advance of receiving expected tax revenues. SP-1 is the top of three S&P ratings for municipal short-term notes. It denotes “strong capacity to pay principal and interest.”
In the press release, city Controller Daryl Jones said the rating will help the city find investors for the upcoming TAN sale and pay off a $45.9 million pension obligation next month in one lump sum rather than four, saving taxpayer $1.5 million in the process.
“City residents, property owners, and business operators should take pleasure in this recognition by an industry giant of New Haven’s responsible, capable fiscal stewardship,” the release quoted Mayor Toni Harp as saying.