Town Administrator Matthew Hanson is pleased to announce that on June 2, 2022, S&P affirmed Tyngsborough’s AA+ bond rating. This is the second highest rating that a municipality can obtain from S&P and is awarded to entities with “a very strong capacity to meet financial commitments”. A strong bond rating helps the Town secure favorable interest rates on borrowing and reflects positively on management practices.
In affirming the rating, S&P noted “Strong management practices continue to support a growing tax base with capital maintenance through Tyngsborough’s commercial corridor.” Specifically, they highlight the following:
“Very strong regionally connected economy, with access to a broad and diverse metropolitan statistical area (MSA)
“Very strong management, with strong financial policies and practices under our Financial Management Assessment methodology”
“Strong finances, with consistent small surpluses and growing reserves”; and
“Very strong debt and contingent liability position, with rapid amortization, but growing pension and other postemployment benefit (OPEB) costs”.
In closing, S&P notes that “continued expansion of the Town’s tax base, while adhering to financial management policies and maintaining reserves commensurate with those of higher-rated peers could lead to positive rating action”. This would result in the Town obtaining the highest rating possible, a AAA.
You can view the entire rating report compiled by S&P here.