Town increases Bond rating from AA+ to AAA and removed from Under Criteria Observation
Huntington, NY – The Town of Huntington once again finds itself on sound financial footing after Fitch upgrades the Town’s Bond Rating to AAA status, the highest possible rating for a government entity. Fitch states that Huntington’s rating outlook is stable and has removed the Town from under criteria observation.
The town's 'AAA' Issuer Default Rating (IDR) and general obligation (GO) bond rating reflect the implementation of Fitch's new "U.S. Public Finance Local Government Rating Criteria". The 'AAA' IDR reflects the town's 'aaa' financial resilience reflective of a 'high' ability to raise revenues and Fitch's expectation for unrestricted reserves to be maintained at or above 10% of spending.
According to Fitch, the Town’s reserve levels have comfortably exceeded levels since 2016. Huntington’s long-term liability burden is assessed as 'strongest' and reflects very low direct debt and net pension liabilities relative to residents' personal income levels, and moderate carrying costs. Demographic and economic level metrics are considered as 'strongest' reflective of residents' highly educated status and above-average wealth levels when compared to Fitch's local government ratings portfolio.
Recently, Huntington Town Supervisor Ed Smyth announced record savings for the Town’s fiscal year 2023, reporting a net increase of $10.5 million of combined savings across all town funds. Smyth concluded, “These budget savings, are a direct result of fiscal prudence including, grants from County, State and Federal agencies, earned interest on deposits and staunch financial oversight. Each of the Town’s 17 directors deserves the credit for creating operational efficiencies, eliminating wasteful spending, and keeping their departments as streamlined as possible, without reducing services to the public.”
Smyth added, “This Fitch announcement further affirms Huntington’s fiscal stewardship is strong and our taxpayers are getting their money’s worth.”
Fitch, one of the “Big Three” credit rating agencies with Moody's and Standard & Poor's, is a nationally recognized statistical rating organization designated by the U.S. Securities and Exchange Commission.
