Moody’s Ratings on March 12 upgraded West Haven’s general obligation bond rating from Baa3 to Baa2, while S&P Global maintained the city’s long-term credit rating at A- with a “positive” outlook, Mayor Dorinda Borer announced.
Borer said she’s delighted about the Baa2 rating upgrade and maintaining the A- rating.
“The continual upgrades in the national credit ratings are tangible evidence that West Haven continues to move in the right direction,” Borer said. “This has been a wider team effort, and I’m thankful to everyone involved for focusing, buckling down and working to change the way we do business. This includes our residents who have been patiently understanding and receptive to changes that were necessary in order to move the needle.”
The mayor added, “I’m proud of our city collectively.”
In its analysis upgrading West Haven’s 2025 general obligation bonds, Moody’s said: “The town’s financial position has benefitted from notably improved financial management” … “and a wholesale replacement of people in many of the key political and administrative positions over the last year. As such, governance is a key driver of the rating assignment.”
The report continued, “In addition, the fiscal 2023 audit was published on-time, breaking a two year streak of late audits.”
According to S&P’s analysis, the city’s A- rating “reflects our view of West Haven’s adoption and implementation of stronger financial management practices, coupled with improvement in internal controls.”
The New York agency said the rating also reflects that “the city has been taking positive steps to address these issues and completed its fiscal 2024 audit in a timely manner.”
In addition to governance, another aspect of criteria that West Haven was rated on was environmental.
“Although rising sea levels and extreme weather events pose long-term risks for the city, we believe management continues to plan and implement resiliency efforts to help minimize them,” the report said.
S&P touted West Haven’s positive outlook, saying: “The positive outlook reflects the city’s strong performance resulting in increases in available reserves and improved financial management practices. The outlook also reflects what we believe is a one-in-three chance that we could raise the rating if the city can continue its positive performance.”
In its credit opinion regarding management, the agency said, “With a new administration as of January 2024, the city has taken several steps to cure the deficiencies highlighted in the fiscal 2023 audit and improve its internal control functions.”