Hamilton Township could save close to $2 million on its debt after Standard & Poor’s upgraded its credit rating, township officials said Tuesday.

The agency, citing the township’s “improved finances and management practices...and low debt with a rapid debt amortization schedule,” upgraded the town to a AA- rating, which could allow the district to get lower rates on its debt. The town also has a “solid employment base” and “strong and stable economic indicators,” but said the administration also has long-term costs from retirees and health benefits.

“The stable outlook reflects Standard & Poor's opinion of Hamilton Township's improved finances and management practices. We expect the township to maintain, what we consider, its good finances due to, what we regard as, its conservative budgeting practices,” the agency’s report said.

John Barrett, the town’s Chief Financial Officer, said he was not certain the rating change would affect the proposed 2013 budget, partially because of its timing. But, he said, any money saved when the district refinances could roll over to the next year.

“Depending on the result of the financing and on the schedule, we might not have enough opportunity to reduce our debt service payments this year,” he said.

The savings would come from a lower interest rates on new bonds the township could go out for with its improved rating, he said.

Hamilton Mayor Kelly Yaede, in a press release announcing the change, said it was a sign her administration was on the right track.

“This very positive assessment from a credible, independent rating service like Standard and Poor’s confirms the strong financial management and controls that my administration works every day to ensure for the taxpayers of Hamilton Township,”