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Fitch Rates Madison GOs AAA
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Business New Haven
6/10/2002
By: BNH
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NEW HAVEN ‹ Fitch Ratings has assigned a ŒAAA rating to the town of Madison s $1.785 million taxable general obligation bonds, which were scheduled for negotiated sale with Roosevelt & Cross Inc. during the week of June 3. Dated June 1, the bonds will come due serially from 2005 to 2019. Fitch also affirms its ratings of ŒAAA and ŒF1+ on Madison s outstanding general obligation bonds and notes, respectively.
Proceeds from the current offering will redeem the 2017-2019 maturities of bonds issued in 1999 to acquire a 650-acre parcel known as the Rockland Preserve. Town officials plan to make about one-third of the land available to private developers, which requires a change in the tax status of the original bonds. The refunding bonds will be retired more quickly than the debt being refunded.
Madison s excellent financial management, abundant wealth and modest capital demands provide protection to bondholders, according to Fitch. Debt burden will rise to moderate levels as a school construction and renovation program accelerates in coming years. Yet Fitch expects that current development efforts, in combination with a statistical revaluation planned for this fall, will allow Madison to achieve the grand-list growth and mill-rate goals embedded in the town s long-range financial forecast.
The ratings outlook is stable. The ŒF1+ rating on the BANs reflects Madison s long-term credit strengths, as well as a demonstrated record of high demand for town obligations on the part of major market participants.
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