Standard & Poors’ Ratings Services has raised Hartford’s bond rating by two notches, citing improved budgetary flexibility, and strong liquidity and financial policies.
The recent rating of ‘AA-‘ compares to a rating of ‘A’ a year ago and will likely allow the city to reduce its borrowing costs, Mayor Pedro E. Segarra said in a statement.
“Since my time on City Council as chair of the Operations, Management and Budget Committee, I have been worried about the City’s bond rating,” Segarra said. “And that’s why it was critical to resolve our deficit and hold the line on spending so we do not place further burden on our taxpayers.”
The ratings agency also assigned a ‘stable’ outlook to the general obligation bonds.
S&P described the city’s financial flexibility and budgetary performance as “adequate,” but described its liquidity as “very strong.” Hartford’s available cash equals nearly 19 percent of total governmental fund expenditures and 372 percent of debt service.
The report also noted that the city fully funded its required contribution to its employee pension plan in each of the past three years.
