Standard and Poors, the global credit rating agency, issued a AAA/Stable bond rating on $9.6 million in new borrowings by Marlboro and upgraded the Township’s existing debt to AAA as well.
The new rating makes Marlboro one of only 29 towns in New Jersey with the top possible credit rating, according to a statement from the Township.
“Marlboro’s credit is officially the highest grade available in the marketplace”, stated Mayor Jonathan Hornik. “This means that our taxpayers benefit from the lowest possible costs for road, parks and recreation and other capital improvements.”
“The upgrade is based on the township’s history of strong budgetary performance, resulting in a history of very strong budgetary flexibility,” said S&P Global Ratings credit analyst Lauren Freire. “In addition, the township has formalized additional policies as identified in our financial management assessment.”
In their report, S and P stated that Marlboro’s bonds represent a better credit risk than U.S. Treasury bonds. “…we believe the township can maintain better credit characteristics than the U.S. in a stress scenario. Under our criteria “Ratings Above The Sovereign: Corporate And Government Ratings—Methodology And Assumptions” (published Nov. 19, 2013, on RatingsDirect), the township has a predominately locally derived revenue source, with 76% of governmental activity revenue derived from local sources with independent taxing authority and independent treasury management from that of the federal government’s.”
“This rating is a direct reflection of the Township’s conservative budgeting, maintenance of and adherence to strong fiscal policies,” said Mayor Hornik. “The Township’s standing in the eyes of the financial world has improved once again due to continued strong operating results and sound management practices.”
S and P last rated Marlboro’s debt in 2015 at which time a AA+ rating was assigned.