Maplewood GO Debt Rating Upgraded To AA+ By S&P

MAPLEWOOD, NJ — Maplewood has received a credit rating upgrade that township officials say could help reduce borrowing costs for future projects.

S&P Global Ratings raised Maplewood’s general obligation debt rating from AA to AA+, the township announced Thursday. The new rating is one level below S&P’s highest grade, AAA.

Credit ratings measure a borrower’s ability to repay debt. Municipalities typically borrow money to pay for major infrastructure and capital projects over time. A stronger rating can help a town qualify for more favorable interest rates, although borrowing costs also depend on market conditions and the terms of each debt issue.

For Maplewood taxpayers, lower interest costs could reduce the overall expense of financing future infrastructure projects.

S&P cited Maplewood’s positive financial performance, growing reserves, conservative budgeting, rising revenues and improving debt profile, according to the township. The agency also recognized efficiencies tied to the South Essex Fire Department, which Maplewood and South Orange created in 2022.

“This higher bond rating is a result of the sound financial decisions made by the Township Committee,” Mayor Victor De Luca said in a township press release provided to Patch. “We’ve worked hard to increase our fund balance, reduce our overall debt and control spending.”

Maplewood added more than $7 million to its reserves during the past four fiscal years, according to the announcement. The township expects to finish fiscal 2026 with more than $14 million in current fund reserves, equal to nearly 22% of revenues.

According to the township, Maplewood provided S&P with extensive financial information and participated in a detailed ratings interview covering its budget, revenue, reserves, debt and financial practices.

Township officials described the ratings review as a collaborative effort.

“This year’s effort was truly a team effort, with our township administrator, finance staff, attorneys, financial advisors and accountants working together to present a clear picture of Maplewood’s financial health,” De Luca said.

“The result is an AA+ rating, and I’d say that’s a pretty good report card for Maplewood,” De Luca said.

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