Standard and Poor's reaffirms Brookfield "AAA' rating

As part of the process to borrow funds (primarily for the new school), Standard and Poor's reviewed the Town of Brookfield and reaffirmed our "AAA" rating, the highest rating given. They rated our debt above 'sovereign,' which means they believe that our debt is safer than that of the U.S. Government. In their report, they rate Brookfield as having "strong management," very strong liquidity," "strong budgetary flexibility" and "strong budgetary performance."
 
This rating is important as it means that Brookfield will be able to borrow at the lowest rates possible, until such time as S&P reviews again. The last time we borrowed, we received an interest rate of 1.55%. This low-interest rate allowed the town to borrow for 20 years instead of 30 years. The original plan put forth to the town 3 years ago showed what an average homeowner would pay for the new school and called for borrowing over 30 years at an interest rate between 4 and 6%.
 
Obtaining a rate of 1.55% and borrowing instead for 20 years will save the town over $21 million over that original plan. We expect to get similar rates when we borrow for the second half of the new school funding in the next week. We expect the new borrowing will also save the town similar amounts over the original plan.
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Submitted by Brookfield, CT

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