SOUTH ORANGE, NJ — South Orange Village Trustee Karen Hartshorn Hilton, who chairs the village’s Finance Committee, announced June 27 that Standard & Poor’s Global Ratings has upgraded South Orange Village’s bond rating, from AA- to AA.
“This is the second year in a row that S&P has improved our rating, continuing to strengthen our financial position and favorably impacting the funding of our capital projects,” Hartshorn Hilton said.
“The recent favorable S&P report had an immediate benefit to taxpayers, evidenced by a concurrent note sale,” village CFO Chris Battaglia said. “The village received eight bids on our note sale, with the award going to BNY Mellon at 2.4989 percent. The average award was closer to 2.75 percent and one was as high as 3.46 percent. In dollars, that’s a savings of $55,000 to as much as $209,000 in just a one-year issue. The compounded savings on our expected long-term bond issues will be exponentially higher.”
The S&P report stated: “South Orange Village’s general credit worthiness is characterized by the township’s strong operating performance throughout the pandemic despite some of the revenue pressures imposed by the pandemic. Specifically, in the past few fiscal years, management’s emphasis on building reserves through conservative budgeting has increased the township’s flexibility to withstand potential adverse operating conditions.”
“We’re thrilled that S&P has again recognized our efforts to maintain a strong financial position,” village President Sheena Collum said. “This upgraded rating shows that our financial strategy continues to be on the right path. This is excellent news for our taxpayers and the fiscal health of our community.”
S&P is a leading provider of transparent and independent credit ratings worldwide.
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