MARLBORO – S&P Global Ratings (S&P) has raised its long term rating to AAA on Marlboro Township’s general obligation (GO) debt and assigned an AAA rating to the township’s 2017 refunding GO bonds, according to a press release from the township.
The AAA designation is the highest rating assigned to issues of debt.
“Marlboro’s credit is officially the highest grade available in the marketplace”, Mayor Jonathan Hornik said. “This means our taxpayers benefit from the lowest possible costs for road, parks and recreation, and other capital improvements.”
According to S&P, “The upgrade is based on the township’s history of strong budgetary performance, resulting in a history of very strong budgetary flexibility. In addition, the township has formalized additional policies as identified in our financial management assessment.”
“This rating is a direct reflection of the township’s conservative budgeting, maintenance of and adherence to strong fiscal policies,” Hornik said. “The township’s standing in the eyes of the financial world has improved once again due to continued strong operating results and sound management practices.”
S&P upgraded Marlboro’s credit rating to AA+ in 2015. This current adjustment to AAA represents the second credit rating upgrade in two years, according to the press release.
“We have made a number of difficult decisions during challenging economic times, decisions which have ultimately resulted in a brighter fiscal outlook,” Hornik said. “The Township Council’s continued review of the township’s finances and involvement in the budget process have been critical to our success. Our employees must also be recognized for implementing the policies which ultimately got us to this point.”
In its report, S&P also reviewed the township’s six-year capital plan and noted Marlboro’s strong commitment to capital improvements going forward.
In its narrative, S&P referenced a number of factors which led to its determination, as follows: very strong economy; strong management; strong budgetary performance; very strong budgetary flexibility; very strong liquidity; strong debt and contingent liability position.
As of April 6, 2017, 29 municipalities, representing 5 percent of New Jersey municipalities, were rated AAA by S&P.