Moody’s Investors Service has given an Aa1 bond rating, the second-highest rating, to Southampton Town’s $14.2-million public improvement bond, allowing for a 2.84 interest rate over 10 years.
The rating is the same as that given to $133 million of the town’s outstanding debt. The statement from Moody’s said the high rating is due in part to a “relatively new management team’s ability to correct the town’s internal accounting procedures and controls coupled with the adoption of formal policies and procedures intended to ensure conservative and transparent financial management going forward.”
It also cited the affluence of the community’s residents, the town’s relatively low debt burden and $3 million in surplus across town funds from last year’s budget.
Moody’s expects the town’s “significantly deteriorated financial position” to stabilize because of the internal controls put in place and cutting back in town expenses, according to the report.