Standard & Poor's Ratings Services said it raised its underlying rating on the town of Groton, Mass.' general obligation debt to AA-plus from AA.
At the same time, Standard & Poor's assigned its AA-plus long-term rating to the town's 2013 GO fire station bonds. The outlook on all the ratings is stable.
"The upgrade follows a review of the town's financial policies and practices, which we have determined are strong, well embedded, and likely sustainable," said Standard & Poor's credit analyst Victor Medeiros.
Additional factors in support of the rating include Groton's: primarily residential tax base, with access to jobs in and around the deep and diverse Boston employment base; very strong wealth and incomes and low unemployment; stable budgetary performance and strong financial reserves; and a moderate overall net debt burden, low debt service carrying charge, and manageable long-term liabilities.
The town's full faith and credit GO pledge secures the bonds. Groton intends to use the proceeds to finance construction of a new fire house.
Groton, with an estimated population of 10,400, is a residential community in central Massachusetts, approximately 35 miles northwest of Boston.