Description
Press release from the Town of Southampton:
July 22, 2021
FOR IMMEDIATE RELEASE
As a result of its excellent credit rating, the Town of Southampton received a re-funding bid for approximately $5 million of its Erosion Control District serial bonds from Fidelity Capital Markets at the rate of 0.1090% - one tenth of one percent interest. The sale went through this morning.
According to Comptroller Len Marchese, the Town has never received such a low interest rate on its debt. "This exceedingly low interest rate will result in the Town's saving over $230,000 in interest in just the two remaining years left on these bonds." In announcing its rating action, Moody's Investors Service re-affirmed the Aaa credit rating it awarded the Town in February of this year.
In its Credit Opinion Update dated July 16, 2021, Moody's reiterated the Town's credit strengths:
Exceptionally large and growing tax base Very strong resident wealth profile Consistent and robust financial performance Low debt burdens It also noted that the pandemic has had little effect on the Town's financial health.
Supervisor Jay Schneiderman stated, "This current serial bond sale and re-affirmation of our Aaa rating by Moody's is a testament to the strong financial policies and strict budgetary guidelines the Town has put in place, with the help of Comptroller Marchese and his staff."
This press release was produced by the Town of Southampton. The views expressed here are the author's own.
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