Last month, Moody’s Investors Service upgraded the City of Fairfield’s general obligation unlimited tax or GOULT rating to A3 from Baa1, affecting $640,000 of rated GOULT debt. The outlook has been revised from positive to stable. In a statement released from Moody, they said that the upgrade to A3 is based on the city’s strong financial operations following the adoption of long-term financial policies that have returned operating reserves back to healthy levels relative to budget. The rating also reflects the city’s small tax base in the southeast part of the state , below average income indices, and moderate debt and pension burdens. The rating also considers the city’s high fixed costs stemming from rapid amortization of outstanding fixed rate debt.
The stable outlook reflects the expectation that the city’s improved fiscal management will maintain sound financial operations and healthy operating reserves. The stable outlook also reflects the expectation that the city’s local economy will remain stable given its young and growing population.