#MiddletownRI recently received word the community maintained its "Aa1" bond rating, a nod to its leadership, vision and constant focus on the bottom line. The announcement saves taxpayers on the cost of borrowing, is a show of stability and more.
FOR IMMEDIATE RELEASE
CONTACT: Matt Sheley at (401) 842-6543 or msheley@middletownri.com
MIDDLETOWN’S BOND RATING STAYS STRONG
MIDDLETOWN, R.I. (MAY 20, 2024) – The Town of Middletown remains a good investment.
During a recent call with the Moody’s financial services company, town officials learned the community would retain it’s “Aa1” bond rating, one of the highest in the state.
That’s good news for Middletown — and its taxpayers — for a number of reasons, not the least of which is it will reduce the cost of borrowing any time the town goes out for bond.
News about the bond rating was formally announced by the New York City firm Friday.
“A lot of work goes into our bond rating behind the scenes, work that we all take very seriously,” Town Administrator Shawn J. Brown said. “We were exceedingly pleased with the news from Moody’s and what it means for Middletown, our residents and businesses moving forward.”
The latest ratings call with Moody’s took place on May 9. It included in-depth interviews by Moody’s analysts with Brown, Finance Director Marc Tanguay, Deputy Finance Director Patrick Guthlein, Information Technology Director Matt Wainwright, Town Planner Ronald Wolanski and Tax Assessor George Durgin.
Leading up to the call with Moody’s or any financial analysts, Brown said he stresses to staff
to be prepared for anything and the importance of having all your information locked down 100 percent.
“They’re looking at everything we do and how well we do — or don’t do it,” Brown said. “They’re checking our real estate market, our social media, the website, all our numbers, everything. This is an extremely thorough process because when they assign us a rating, they want to know they’re making the right near- and long-term decisions. During the call, they even mentioned using the flood plain maps we have online through (Town Planner) Ron (Wolanski’s) website.”
Brown credited Tanguay for his continuing efforts to keep Moody’s and other borrowers constantly in the loop about Middletown, sending and sharing information constantly.
He also noted that Middletown as a whole works hard to be transparent with its finances, whether its the annual budget process, the middle-high school bond or everyday questions.
“If you look back at things, we’ve been placing great emphasis on educating the community about our debt service in recent months with the school project,” Brown said. “We’ve heard from our financial advisors here, we’ve had multiple public presentations, we’re in regular communication with our data to the Public Finance Management Board. We do everything we reasonably can to make sure we’re operating at well more than 100 percent in this arena.”
The call was needed because Middletown is going out for an open space bond and soon after, part of the $190 million bond for a new middle-high school and related work.
When those bonds hit the market, potential purchasers will look for a credit rating from Moody’s or other agencies so buyers have a sense of what’s happening in town and how reliably the community will repay that money.
The last time Moody’s updated the town’s bond rating was December 2022. To check out the informational packet provided to Moody’s by Middletown, visit https://mdl.town/Moodys-May24 online.
Brown said the bond rating was important to Middletown for other reasons as well.
For one, it provides an outsider look at how the community and its leadership are performing through a non-biased, third party lens.
Additionally, it helps residents and homebuyers know how solvent and stable the town is and in comparison to others as well.
It also gives businesses and employers a glimpse into Middletown and the community’s ability to provide a smooth, secure work environment to expand and grow.
“I want to personally thank everyone who has worked so hard to make Middletown the place it is today,” Brown said. “The Town Council, our employees, volunteers, businesses and more. This is just one example of how it takes a a lot of people pulling in the same direction to achieve what we have here and it’s something we should all be very proud of, — for Middletown.”
Document Link: https://www.middletownri.com/DocumentCenter/View/12684/NYCU-Moodys