Fitch Affirms Worcester, Mass., at AA-Minus

Fitch Ratings assigned an AA-minus rating to Worcester’s $72.1 million of general obligation municipal-purpose loan bonds.

The Massachusetts city expects to sell them competitively on Tuesday.

In addition, Fitch affirmed the same rating on the city’s outstanding $545 million GO bonds.

Proceeds will finance various city, school, and water and sewer system improvements.

The bonds are a general obligation of the city, backed by its full faith and credit, but a state statute limits the property tax levy.

“Worcester’s recent history of sound operating results is a reflection of its strong financial management, prudent fiscal policies and conservative budgeting practices,” Fitch analysts said in the credit report.

Fitch cited the growth in the city’s general-fund reserves and a cushion under the primary and secondary property-tax cap with additional reserves outside the general fund.

According to Fitch, Worcester also benefits from a university and health care presence that offsets high unemployment and wealth levels that are below state and national averages.

For reprint and licensing requests for this article, click here.
Massachusetts
MORE FROM BOND BUYER