Methuen, MA 'AA-' GO Debt Rating Placed On CreditWatch Negative Due To Uncertain Finances

BOSTON (S&P Global Ratings) July 18, 2018--S&P Global Ratings placed its 'AA-' long-term rating on Methuen, Mass.' outstanding general obligation (GO) debt on CreditWatch with negative implications. "The CreditWatch action reflects our view that there is at least a one-in-two chance that we may lower the rating on Methuen's outstanding bonds within the next 90 days due to the city's potentially deteriorated financial position," said S&P Global Ratings credit analyst Christian Richards. Reportedly, the imbalance stems from expenditures exceeding revenues in the school department, and projections for rapidly increasing personnel costs for active police department personnel. "Over the next 90 days, we will evaluate and determine whether management has a credible plan to align revenues to expenditures and our review

...BOSTON (S&P Global Ratings) July 18, 2018--S&P Global Ratings placed its '##-' long-term rating on Methuen, Mass.' outstanding general obligation (GO) debt on CreditWatch with negative implications. "The CreditWatch action reflects our view that there is at least a one-in-two chance that we may lower the rating on Methuen's outstanding bonds within the next 90 days due to the city's potentially deteriorated financial position," said S&P Global Ratings credit analyst Christian Richards. Reportedly, the imbalance stems from expenditures exceeding revenues in the school department, and projections for rapidly increasing personnel costs for active police department personnel. "Over the next 90 days, we will evaluate and determine whether management has a credible plan to align revenues to expenditures and our review could result in a downgrade, possibly by multiple notches, depending on the degree of the financial imbalance and whether we believe the plan to correct is sufficient to maintain...

Ratings Action