Moody's Investors Service said it has assigned a Aa2 rating to the town of Auburn, Mass.' $12 million general obligation municipal purpose loan of 2015 bonds and a MIG 1 rating to the $5.1 million general obligation bond anticipation notes (BANs, dated September 15, 2015 and payable September 15, 2016).
At this time, Moody's has upgraded the rating to Aa2 from Aa3 on the town's $37.5 million of outstanding GO bonds.
The upgrade to Aa2 reflects an improving financial position bolstered by strong fiscal management.
The rating also incorporates a moderately sized tax base with a commercial presence, above-average but manageable debt burden, as well as an average pension liability.
The MIG 1 rating reflects the town's sound, long-term credit profile, ample liquidity and adequate takeout management. The rating anticipates strong market access given frequent debt issuance of at least annually for the past five years.
