Standard & Poor’s said it has raised the underlying rating on Taunton, Mass.’ general obligation debt to A-plus from A. At the same time, the agency assigned its AA-minus rating to Taunton’s GO Series 2010 municipal bonds, reflecting their participation in the state-qualified bond program. The outlook is stable.
“The upgrade reflects our assessment of Taunton’s maintenance of a strong financial position despite some recent drawdowns,” said Standard & Poor’s credit analyst Henry Henderson.
The ratings reflect the city’s good location, with access to the larger Boston and Providence employment bases; strong financial position, despite declines in fiscal 2009 and projected declines in fiscal 2010; and low debt burden, net of state aid and self-supporting enterprise fund operations.
Offsetting these strengths are Taunton’s elevated unemployment levels and delayed financial reporting.
The stable outlook on the state-qualified bond issues mirrors the outlook for the Massachusetts.
The stable outlook on the city’s non-state qualified bonds reflects Standard & Poor’s expectations that Taunton’s tax base will continue to provide a sound source of general fund revenue, enabling the unreserved general fund position to remain strong.
While the city’s financial reporting continues to be delayed, its audited financial position remains strong, despite some recent declines, according to analysts.
