Town Maintains AA+ Bond Rating, Saves Taxpayers $3.9 Million By Restructuring Debt From High School Project

WILMINGTON, MA — At last week’s Wilmington Board of Selectmen Meeting, Town Finance Director Bryan Perry announced that the town has maintained its AA+ rating from Standard & Poor’s after a review in August. AA+ is the agency’s second highest rating.

“S&P’s report notes that the town maintains ‘very strong budgetary flexibility’ with ‘strong management and good financial policies and practices’,” wrote Perry in a memo.

Standard & Poor’s top rating — AAA — remains elusive.

“S&P continues to view the town’s Pension and OPEB obligations as a credit weakness,” explained Perry. “Despite the fact that the town has annually contributed to stabilization funds since 2016 and made additional payments beyond the pension assessment, S&P still reviews these as a weakness due to the relatively low funded ratios respectively.”

The town’s strong bond rating allowed it to recently pursue an “advanced refunding” of the the remaining debt from the High School building project. The move is now expected to save the town an anticipated $3.9 million — $229,000 each year through the end of the bond in 2037.

The town originally thought the savings would total $2.6 million.

Like Wilmington Apple on Facebook. Follow Wilmington Apple on Twitter. Follow Wilmington Apple on Instagram. Subscribe to Wilmington Appleā€™s daily email newsletter HERE. Got a comment, question, photo, press release, or news tip? Email wilmingtonapple@gmail.com.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s