The Town of Concord is pleased to announce that the Town has once again been awarded a Aaa bond rating by Moody’s Investor Service. During this uncertain time, the bond rating shows a strong financial position and the ability to borrow at a lower rate if deemed necessary in our fight in the COVID-19 Pandemic.
Please find the body of the main text from the Moody’s Press Release below. For the full release, please click here.
New York, May 07, 2020 -- Moody’s Investors Service has assigned a Aaa rating to the Town of Concord, MA’s $5.7 million General Obligation Municipal Purpose Loan of 2020 Bonds. We maintain the Aaa rating on the town’s outstanding general obligation unlimited tax and general obligation limited tax (GOLT) bonds. The outlook is stable.
The outstanding general obligation unlimited tax bonds are considered unlimited tax because the entire amount of debt service has been voted excluded from restrictions under Massachusetts law on the town’s ability to increase property taxes to pay debt service, referred to as Proposition 2 1/2. We consider the pledge supporting the current issue and outstanding limited tax bonds to be general obligation limited tax because not all of the debt service has been excluded under Proposition 2 1/2.
The Aaa rating reflects a healthy financial position supported by strong reserves and fiscal management. The rating also incorporates a sizable and affluent tax base, below average debt burden and well managed pension and OPEB liabilities. The absence of distinction between the GOLT and the general obligation unlimited tax rating reflects the town’s ability to override the property tax levy cap and its pledge of its full faith and credit. We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. The coronavirus crisis is not a key driver for this rating action. We do not see any material immediate credit risks for Concord. However, the situation surrounding Coronavirus is rapidly evolving and the longer term impact will depend on both the severity and duration of the crisis. If our view of the credit quality of Concord changes, we will update the rating and/or outlook at that time.
The stable outlook reflects our expectation that the town will continue to exercise conservative fiscal management to maintain a healthy financial position. The outlook also incorporates the stable tax base valuation and continuing voter support when needed to approve debt exclusions and general overrides to the Proposition 2 1/2 tax levy limit.