Stamford's AAA Bond Rating Reaffirmed By Fitch Ratings: City

Information via city of Stamford

STAMFORD, CT — Mayor Caroline Simmons this week announced that the city of Stamford’s "AAA" bond rating has been reaffirmed by Fitch Ratings. This is the highest bond rating possible.

"Our AAA bond rating is a testament to Stamford’s fiscal health and strong fiscal management," Simmons said in a news release. "This rating shows that Stamford can provide robust services to all residents while still maintaining the highest level of fiscal strength. We should be proud of this top-tier rating and leverage it to maintain our city’s momentum, remain fiscally disciplined, and continue to build a Stamford where all residents can live, work, and thrive."

Rating metrics that allow for the AAA rating include strong management practices, a sizeable, diverse, and growing grand list, strong financial budgetary discipline, and moderate debt levels, the city said.

The Fitch Ratings report highlighted that this rating reflects "Stamford’s financial resilience, given its high revenue control, midrange expenditure control, and Fitch’s expectation that the city will maintain reserves at or above 10 percent of spending."

The city of Stamford closed FY2022-2023 with an unprecedented surplus of approximately $29 million. In order to bolster the city’s strong financial footing and advance key policy priorities, the mayor intends to allocate the surplus funding in the following areas:

1. Capital Non-Recurring-BOE (Fund 57) - $10,000,000
2. City / Capital Non-Recurring Fund - $8,000,000
3. Rainy Day Fund - $6,000,000
4. Affordable Housing Trust Fund - $2,000,000
5. Risk Management Fund for Heart & Hypertension - $1,750,000
6. Board of Education / Capital Non-Recurring Fund - $1,082,000

The remaining $745,645 will be added to the Unassigned Fund Balance to enhance the city’s financial resources that could be appropriated on an emergency basis, if needed.