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Standard and Poors Issues 'AA' Rating for New Chelmsford Bonds

The town is set to issue bonds for nearly $5.3 million, which will be paid off until 2024, shortly after Standard and Poor's released a report describing the town's finances as "strong" and "stable"

 

Standard and Poors issued a report on Monday assigning a AA long term rating for a new $5.292 million general obligation municipal purpose bond, while also reaffirming the town's AA long term and underlying ratings on existing general debt.

The report indicated a variety of strengths for the town ranging from a diverse tax base and four net operating budget supluses in five years to an overall direct debt burden and financial management practices described as "strong."

Additionally, the report praised the town's fiscal year 2012 available fund balance of $13.1 million, which includes the $7.7 million left in the town's stablization reserve fund.

Ultimately, the report concludes that the town's credit outlook is stable, and will continue to remain stable if the town maintains its reserve funds at or near current levels while managing OPEB liabilities.

However, the report also indicated that the town's credit could actually improve with an increase to reserves, continuing operating surpluses and tax base growth, or it could be lowered if the town's financial position deteriorates or long-term liabilities are not addressed before they become a significant strain on the town's operating budget.

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