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Moody’s Affirms Middletown’s Bond Rating

Moody’s Investors Services has affirmed its AA2 rating on Middletown Township’s $67 million general obligation bonds.

In a statement issued on Friday, March 23, the rating agency said,

“The Aa2 rating reflects the township’s sizable tax base, low debt profile, and sufficient liquidity and reserve levels. The affirmation also considers the township’s narrow fund balance of $2.14 million (or 3.5% of revenues) in fiscal 2010. The primary driver of the $3.70 million fund balance drawdown was due to an influx of negative tax appeal judgments following the 2009 revaluation, which resulted in $1.3 million impact on fund balance. Additionally, decreased state aid and increased health care and retroactive labor salary expenditures further pressured operations. However, in fiscal 2011, new management responsively conducted a reassessment of assessed valuation and reduced the budget by 5.8%. The unaudited year-end fund balance for fiscal 2011 is estimated to be $5.87 million (or roughly 9.2% of revenues). Moody’s expects the township to improve and maintain liquidity and Current Fund balance to reported unaudited figures. Inability to achieve such levels, will result in negative rating credit pressure.”

Moody’s recognised the Township’s prudent management, low debt level with rapid amortization and sizeable tax base with high levels of resident income. 

Mayor Tony Fiore said that he was very pleased by the rating agency’s opinion.  “At a time when many municipalities, including some of our neighbors, are seeing their credit ratings reduced, I am pleased that Moody’s recognised the prudent decisions that our administration has implemented during these most challenging economic times.”

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Posted: March 26th, 2012 | Author: | Filed under: Middletown, Tony Fiore | Tags: , , , , , , , | 5 Comments »

5 Comments on “Moody’s Affirms Middletown’s Bond Rating”

  1. Tom Stokes said at 11:21 pm on March 26th, 2012:

    Congratulations to Middletown and Middletown’s management and employees.

    Mayor Fiore and the entire Township Committee deserve a big Thank You from the taxpayers.

    Great job!

  2. Proof Positive said at 11:22 pm on March 26th, 2012:

    Hey Art, wasn’t it you who asked the question “Where in New Jersey is a town better run than Middletown?” Looks like the answer is the same – nowhere. If I’m not mistaken, wasn’t it Red Bank and Marlboro who recently had their bond ratings lowered? And aren’t both run by Democrats? Makes it even more tragic that Christie has to deal with a Democrat majority. They are the ones who are killing the local towns.

  3. brian said at 10:43 am on March 27th, 2012:

    Great job Tony and Council.

  4. brian said at 10:43 am on March 27th, 2012:

    I am guessing the Busboy will not be printing this in the Depressed.

  5. of course, said at 12:43 pm on March 27th, 2012:

    when any Monmouth County town needs an even better deal on their bonding, they need to use the County Improvement Authority, since our county still has a Triple A, one of only 30 or so in the nation, and, thanks to Obamaville, we ‘re now more solid than the US of A!.. pretty pathetic, huh??.. we need to stop thinking Romney, as paltry a candidate as he may be, will lose, since our very future existence and that of our kids and grandkids, depends on the guy squeaking by in this mess, this year!