Summary: Branford, Connecticut; General Obligation

S&P Global Ratings assigned its 'AAA' long-term rating to Branford, Conn.'s issue of 2018 general obligation (GO) bonds. In addition, we affirmed our 'AAA' long-term rating on Branford's previously issued GO bonds. The outlook is stable. Branford's full faith and credit pledge, payable from the levy of an unlimited-ad valorem tax on all taxable property in the town, secures the bonds. We rate Branford higher than the sovereign because we believe the town can maintain better credit characteristics than the U.S. in a stress scenario, due to its predominantly locally derived revenue base and our view that pledged revenue supporting debt service on the bonds is at limited risk of negative sovereign intervention. In 2017, local property taxes generated 83%

...S&P Global Ratings assigned its '###' long-term rating to Branford, Conn.'s issue of 2018 general obligation (GO) bonds. In addition, we affirmed our '###' long-term rating on Branford's previously issued GO bonds. The outlook is stable. Branford's full faith and credit pledge, payable from the levy of an unlimited-ad valorem tax on all taxable property in the town, secures the bonds. We rate Branford higher than the sovereign because we believe the town can maintain better credit characteristics than the U.S. in a stress scenario, due to its predominantly locally derived revenue base and our view that pledged revenue supporting debt service on the bonds is at limited risk of negative sovereign intervention. In 2017, local property taxes generated 83% of general fund revenue, demonstrating a lack of dependence on central government revenue. (See "Ratings Above The Sovereign: Corporate And Government Ratings--Methodology And Assumptions," published Nov. 19, 2013, on RatingsDirect.) We understand...

Summary