Moody's Investors Service affirmed East Hampton Town's Aaa credit rating, the highest rating it assigns, in a credit opinion issued last Thursday.
The town achieved the Aaa status in 2017 and has maintained the rating since then. According to a statement issued from Town Hall on Tuesday, Moody's said the town has "strong finances with healthy reserves."
The opinion cited the town's "sizable, affluent, and growing tax base, strong financial position, and modest leverage," and assigned a "stable outlook," reflecting the investors service's view "that the town's financial position will remain strong due to its conservative budgeting and proactive financial management practices."
Moody's anticipates that the town's tax base will remain "very strong and continue to experience steady growth," according to the statement.
The coronavirus pandemic has not had a material effect on the town, Moody's said, although "certain small revenue streams were negatively impacted." The town's debt burden is low and is expected to remain modest.
The rating update took place in advance of a debt sale that will refinance existing debt and raise an additional $6.4 million to fund new capital projects, the statement said.
"I am pleased that we have once again received Moody's highest rating, which not only reflects proper fiscal management, but saves money for taxpayers," Supervisor Peter Van Scoyoc said in the statement. "With such an excellent credit rating, the Town of East Hampton can borrow money at low cost to pay for infrastructure maintenance and improvements, and other critical projects."
