Moody's Investors Service has assigned a MIG 1 rating to the Town of Framingham's $47.9 million bond anticipation notes dated June 15 and Dec. 14 2012. The notes finance ongoing water and sewer improvement projects.
Concurrently, Moody's has affirmed the Aa2 rating assigned to $94 million of outstanding long-term general obligation debt. The Aa2 rating reflects the town's stable financial position, sizeable and diverse tax base, and manageable debt profile, reported Moody's.
The MIG 1 rating incorporates the town's satisfactory long-term credit profile as well as its proven access to the capital markets, reported Moody's. An MIG 1 rating denotes denotes superior credit quality.
Moody's listed the Town of Framingham's strengths:
- Sizeable tax base located on major transportation routes
- Structurally balanced operations over the last two fiscal years
- Improved reserve levels
Moody's listed the Town of Framingham's challenges:
- Town relies on annual free cash appropriations to supplement budget
- Elevated debt burden due to overlapping state debt
Moody's noted the rating could go up if:
- Maintenance of structurally balanced operations and increased reserve levels
- Significant tax base growth
Moody's noted the rating could go down if:
- Reduction of General Fund Balance and free cash
- Deterioration of the town's tax base
- Failure to address long term pension and OPEB obligations