MOODY'S AFFIRMS UNDERLYING Aa3 RATING ON THE TOWN OF THOMASTON'S (CT) LONG-TERM G.O. DEBT; ASSIGNS NEGATIVE OUTLOOK

Posted on: June 8, 2010, 4:13 pm

NEW YORK, Jun 8, 2010 -- Moody's Investors Service has affirmed the Aa3 rating on the Town of Thomaston's (CT) outstanding $23.5 million of general obligation bonds and assigned a negative outlook on the rating. The outlook for the rating reflects our expectation that the town's reserve levels will continue to weaken in fiscal 2010 and possibly further in fiscal 2011 due to an voter opposition to increasing the property tax levy and potential state aid reductions. The Aa3 rating reflects the town's moderately sized tax base with average wealth and income levels and decreasing General Fund balance. The affirmation is additionally based on the town's average debt burden with a fast payout. All of the town's debt is fixed rate and the town is not party to any derivative agreements...

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