BOUND BROOK NJ – Moody’s Investor Services has upgraded the Borough of Bound Brook’s credit rating from A2 to A1.
Moody’s cited the Borough’s much-improved financial position and its ongoing local economic redevelopment in the local economy as strengths leading to the upgrade. It also noted the Borough’s active plans to reduce debt, including an additional $1 million debt-service payment in 2020.
Moody’s Investor Services uses a rating scale to rank the credit worthiness of commercial and government entities. The upgrade to A1 puts Bound Brook in the top level of the Agency’s upper-medium grade deeming the Borough as a low credit risk to investors. The new rating will result in favorable interest rates when the Borough permanently finances its debt.
“Thanks to the Economic Development and Finance Committees we have taken a deliberative, proactive approach to managing our redevelopment plan and finances while reducing our long-term liabilities,” said Bound Brook Mayor Robert Fazen. “We are pleased that Moody’s recognizes the improvements we have made to our financial position and approves the fiscally-prudent path we have taken to get here. Increased revenues, controlled expenditures and keeping a sharp eye on the future blazed that path.”
In its detailed credit considerations, Moody’s cited Bound Brook’s location as an asset. The report attributed the economic growth to the Borough’s river-front properties, access to the train lines and major highways, proximity to central New Jersey job market and education institutions.
“This result is a testament to the work done over many years by our Planning Board in following a disciplined approach to redevelopment and our Governing Body in ensuring agreements reached with developers always serve the best interests of Bound Brook residents,” said Councilman Jake Hardin, who chairs the Council’s Economic Development Committee. “With the completion of the Green Brook Flood Control Project, economic redevelopment will continue to produce increased revenues and our management team continues to implement sounds fiscal policies. Together, this will secure a better future for the Borough.”
Bound Brook will have a bond sale in August where it will permanently finance over $4.66 million in debt. The newly upgraded rating will be applied during this sale and will result in a savings to the tax payers of the Borough.