By Gene Robbins, Managing
Outside experts put the township’s fiscal health as tiptop.
Standard & Poor’s Ratings Services, an independent firm that evaluates agencies that borrow money, has raised its evaluation of Hillsborough Township ability to repay money as extremely high.
The rating means future township borrowing could likely see more bidders offering to lend money at lower interest rates, thus bringing a savings to taxpayers.
S&P’s evaluation puts Hillsborough at a AA+ bond rating, which is one step below the top rating of AAA, said Committeeman Frank DelCore.
“It’s just about as good as you can get,” said Mr. DelCore. He said it put Hillsborough’s credit worthiness on a par with the U.S. government, which drew some chuckles at the April 8 Township Committee meeting.
The ranking represents a two-notch increase from the prior AA- rating. A credit rating is the opinion of the firm, in this case S&P, on the overall credit worthiness of the borrower. A rating of AA+ indicates a high-quality, very low credit-risk organization.
Township officials hailed the ranking as continued proof of the township’s financial stability. The township’s $6 million in outstanding bonds includes the refunding bonds from 2012 which saved the township nearly $700,000 in interest payments.
“This rating is indicative of this Township Committee’s continued fiscal responsibility and debt reduction,” said Mayor Doug Tomson on April 8.
Mr. DelCore, the finance liasion, said, “This improvement in rating is a testament to the financial stewardship and management practices that have been implemented and also reflects the benefit of the township’s ongoing commitment to the pay-as-you-go policy for routine capital purchases.”
“The stable outlook reflects our view of the township’s consistent financial performance and economy, which is supported by standard management practices,” according to a statement from Standard & Poor’s. “The rating is further supported by the township’s very strong liquidity, strong budget flexibility and adequate budgetary performance.”
Standard & Poor’s Ratings Services is the world’s leading provider of independent credit risk research and benchmarks. The agency publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities.

