AAA for Southampton Town

Moody’s Investors Service, which evaluates municipalities, schools, businesses, and other entities on their ability to repay short-term debt, has upgraded the Town of Southampton’s credit rating to the highest level possible, AAA.

Moody’s re-evaluated the town’s credit rating at the request of Supervisor Jay Schneiderman, who has said he felt it should be on par with Standard & Poor’s, which upgraded the town’s rating to AAA in 2014 after a five-year recovery period. It has remained as such since.

The rating reflects a strong ability to repay outstanding liabilities and qualifies the town for the lowest interest rates on capital borrowing. The decision was based on the town’s “very large and stable tax base, which showed continue resilience;” “strong management,” diversified revenue, and the town’s recent financial performance, which showed growth in the available fund balance, the town said.

Moody’s also noted the revitalization efforts and preservation efforts underway, and the town’s commitment to maintaining infrastructure.