FOR IMMEDIATE RELEASE
As a result of its excellent credit rating, the Town of Southampton received a re-funding bid for approximately $5 million of its Erosion Control District serial bonds from Fidelity Capital Markets at the rate of 0.1090% - one tenth of one percent interest. The sale went through this morning.
According to Comptroller Len Marchese, the Town has never received such a low interest rate on its debt. “This exceedingly low interest rate will result in the Town’s saving over $230,000 in interest in just the two remaining years left on these bonds.” In announcing its rating action, Moody’s Investors Service re-affirmed the Aaa credit rating it awarded the Town in February of this year.
In its Credit Opinion Update dated July 16, 2021, Moody’s reiterated the Town’s credit strengths:
- Exceptionally large and growing tax base
- Very strong resident wealth profile
- Consistent and robust financial performance
- Low debt burdens
It also noted that the pandemic has had little effect on the Town’s financial health.
Supervisor Jay Schneiderman stated, “This current serial bond sale and re-affirmation of our Aaa rating by Moody’s is a testament to the strong financial policies and strict budgetary guidelines the Town has put in place, with the help of Comptroller Marchese and his staff.”