Town of Chelmsford Gets Upgraded Bond Rating

Standard & Poor’s announced this week that it has raised its rating on Chelmsford’s general obligation bonds from “AA” to “AA+,” noting that they consider the town has a stable fiscal outlook.

The report noted a strong economy in the region, strength with sustainable formalized financial practices, and an adequate debt profile and overall strong management.

Praise was also given for expectations of a balanced general fund budget in 2014 and a percent of total free cash that they see as stable.

There was some concern over declining assessed values of properties, although the report noted that the assessed value of $4.4 billion decreased at a slower pace this year.

The main concern from the report indicated that the rate could fall in the future due to pressures from Other Post Employment Benefits, commonly known as OPEB, but that it was unlikely that the rating would change within the next two years.

Chelmsford’s bond rating was also recently raised by Standard & Poor’s in 2012.