Standard & Poor's Upgrades Tewksbury's Bond Rating, Lower Interest Rates Could Follow
Nov 06, 2014 10:09AM
By Bill Gilman
This week, Tewksbury Town Manager Richard Montuori announced confirmation that Standard & Poors has improved the bond rating of the town to "AA with a positive outlook."
At a Selectmen's meeting last month, Montuori predicted the upgrade, which is a step toward the town moving to AAA status and lower interest rates on future borrowing and refinancing.
The upgrade serves as a validation of the conservative fiscal policies implemented by Montuori, since taking over as Town Manager in 2010.
Attached is a printable PDF version of the Standard & Poor's report.
Below is a copy of the press release issued by the town:
On October 24, 2014 the Town of Tewksbury’s Bond Rating was evaluated by Standard and Poor’s and was given a rating of AA with a positive outlook. As part of their rationale for the positive outlook Standard and Poor’s cited in their rating report the following factors, specifically the town's:
Very strong economy as it is in the Boston-Cambridge-Newton, Mass.-N.H. metropolitan statistical area (MSA);
Strong management conditions with what we consider "good" financial policies and practices based on our Financial Management Assessment (FMA) methodology;
Strong budgetary flexibility based on what we consider a good available fund balance;
Strong budgetary performance with a history of positive general fund results;
Very strong liquidity providing very strong cash levels to cover both debt service and expenditures;
Weak debt and contingent liabilities position, which includes overall net debt at less than 3% of market value, but what we view as large pension and other postemployment benefit (OPEB) obligations;
According to Todd Johnson Chairman of the Board of Selectmen ”the Town has worked diligently over the past few years to develop strong financial policies and practices that allow for fiscal discipline that has built a solid foundation for the Town’s current and long term finances. The hard work and cooperation of the Board of Selectmen, School Committee, Finance Committee and ultimately Town Meeting has proven to be beneficial and the S&P report reflects that“.