May 01--MIDDLETOWN -- The city's credit rating has been upgraded from AA to AA+ by Standard and Poor's Ratings Services, Mayor Daniel Drew announced Wednesday.
Drew said the rating is the second-highest rating the city is able to achieve, and its highest ever. He said the last time the city's credit rating was upgraded was in the 1990s.
The report note's Middletown's stable economy and "conservative practices that have supported strong budgetary performance." It also says the city has good budget flexibility and a healthy balance in its general fund that has risen in the last few years.
"I would like to congratulate our Finance Director Carl Erlacher, Deputy Finance Directors Diana Doyle and Tayna Oliver-Perry and the entire Finance Department staff for their daily hard work," the mayor said in a letter to the common council. "I would also like to thank you, the Council, for your sound stewardship of public resources. This was a team achievement."
Credit ratings have a direct impact on the interest rates municipalities can achieve on bonds.
Drew said the AA+ rating is "an elite designation that few cities across Connecticut have been able to achieve."
"In our opinion, Middletown's budgetary flexibility is strong and has improved in recent years with the general fund available balance rising in the past two audited fiscal years," the Standard and Poor's report says.
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