...S&P Global Ratings has assigned its '##' rating to Augusta, Maine's 2019 general obligation (GO) bonds and affirmed its '##' rating on the city's GO debt outstanding. The outlook is stable. The city's full faith and credit pledge, subject to the state's LD1 tax levy limit, secures the bonds. Despite the limitations imposed by the state's levy limit law, we did not make a rating distinction for the limited-tax GO pledge given the city's flexibility under the levy limit. We understand bond proceeds will be used for repair and reconstruction of public facilities. Supporting the '##' rating is Augusta's role as the state capital, which, in our view, lends stability to the economy and resilience in periods of economic recession. The city maintains very strong reserve balances despite some planned deficits in the general fund. The revenue environment is stable, and the city is prudent in its budgeting and generally achieves positive variances in revenues and expenditures. In addition, we do not...
