Standard & Poor's Ratings Services said it raised its rating on Eastham, Mass.'s general obligation bonds to AAA from AA.
The outlook is stable.
"We base the upgrade on our recently released local GO criteria," said Standard & Poor's credit analyst Apple Lo.
A pledge of the town's full faith credit and resources and an agreement to levy ad valorem property taxes secure these bonds.
The rating reflects the following factors: a very strong economy, with its projected per capita effective buying income at 126.7% of the U.S. and per capita market value of $536,281; very strong budgetary flexibility, with reserves at about 8% of expenditures for the past several years. The town also has shown the ability and willingness to raise taxes, having voted for a $500,000 permanent operating override in fiscal 2013; strong budgetary performance, with a slight deficit of 0.7% for the general fund in fiscal 2013 and a small surplus of 2.7% in total governmental funds for fiscal 2012; very strong liquidity; strong management conditions, with good financial practices; and very strong debt and contingent liabilities profile.
The stable outlook reflects the town's consistent financial performance and economy, which is supported by good management. The agency does not expect to revise the rating in the next two years because it believes Eastham will maintain strong budgetary performance and very strong liquidity.
