Marlboro’s credit rating upgraded

MARLBORO — Standard & Poor’s has assigned an AA+ rating to the Township of Marlboro Series 2015 bonds with a stable outlook. This rating on financing for projects authorized between 2004 and 2015 represents an upgrade of the township’s credit which was reviewed last in 2010, according to a press release from municipal officials.

“This is tremendous news for Marlboro,” Mayor Jonathan Hornik said. “This rating upgrade affirms the difficult decisions made over the last eight years to reduce the size of government and run it more efficiently. It also represents a reflection of the overall financial stewardship of the municipality.”

Marlboro’s credit was last reviewed by Moody’s in 2010 and was assigned a rating of Aa2.

Moody’s and Standard & Poor’s, representing two of the three primary bond rating agencies, use similar rating formats, with two notable exceptions: Standard & Poor’s uses plus and minus signs and Moody’s uses 1, 2 and 3; and Moody’s capitalizes the first letter only, according to the press release.

“The township has timed this financing to lock in a fixed interest rate at an historically low rate, before the Federal Reserve acts to increase rates for the first time since 2008,” Hornik said. “As a result of this rating upgrade, the township will benefit from an even lower interest rate, one that directly translates into lower costs to taxpayers for road, park and other capital improvements.”

According to the press release, in its narrative, Standard & Poor’s referenced a number of factors which led to its determination as follows: very strong economy; adequate management; strong budgetary performance; very strong budgetary flexibility; very strong liquidity; and strong debt and contingent liability position.

“The report highlights Marlboro’s local economy as ‘very strong,’ ” Hornik said. “The Marlboro Economic Development Committee must be recognized for its role in tirelessly pursuing new, clean, quality ratables.

“We have made great gains on the economic development front, despite the recessionary climate, to the tune of more than $70 million in new commercial ratables or $1.6 million in new tax revenue. This has reduced the tax burden on our residents.

“I am also very proud of the efforts of the Township Council and the employees over the past eight years to help get us to this point,” Hornik said. “An independent credit rating agency has now quantified our hard work in the form of an AA+ credit rating. You don’t hear much about rating upgrades these days, let alone in New Jersey government. This is a great victory for Marlboro.”