Winning Over Wall Street

By Steve Bigham

Three town officials and a banker boarded a limousine for a trip down to Wall Street in New York City Monday morning. They were there on business. Big money was at stake.

On hand were First Selectman Herb Rosenthal, Finance Director Ben Spragg, and Assistant Finance Director Donna Tomasko. Barry Bernabe of People’s Bank joined them.

While in New York, the team met with analysts from Moody Investment Services in preparation for the town’s $10 million bond issuance for the 5/6 school July 18.

“We were there to explain to them what this borrowing is that we’re doing for the 5/6 school,” Mr Spragg explained. “They want to know about Newtown’s financial situation.”

Moody’s requests that communities looking to float big money bonds give specific details as to what their plans are. Mr Spragg was asked to outline why the town was building the school and how it would alleviate school overcrowding.

The town officials were also on hand to seek an upgrade in the town’s bond rating. An upgrade usually results in some savings. Last year, Newtown’s bond rating was upgraded from “A1” to a “AA3”

“We want to maintain our AA3 upgrade and look into being considered for AA2,” Mr Spragg said.

Moody’s last upgraded Newtown’s bond rating in 1972 when it upped the rating from A to A1.

Moody’s has 10 different bond ratings: (from lowest to highest) BAA3, BAA2, BAA1, A3, A2, A1, AA3, AA2, AA1, and AAA.