Summary: Fitchburg, Massachusetts; General Obligation; Non-School State Programs

S&P Global Ratings assigned its 'AA' long-term rating and 'A+' underlying rating to Fitchburg, Mass' series 2020 state qualified general obligation bonds and affirmed its 'A+' underlying rating on the city's outstanding GO debt. The outlook is stable. The long-term rating reflects our assessment of the security provided by the Massachusetts Qualified Bond Act. Under the Qualified Bond Act (Massachusetts General Law, Chapter 44A), approval by the Municipal Finance Oversight Board, which oversees and monitors the program, is required. Once a participant is approved, the state treasurer pays debt service directly to the paying agent from money withheld from the borrower's annual state aid appropriation. If necessary, the state treasurer advances debt service from legally available funds and withholds the

... tax limitation imposed on the city's ability to raise revenue is already embedded in our analysis of the city's financial and economic conditions. We understand the 2020 bond proceeds of approximately $18.6 million will fund a city hall remodeling project, as well as new water meters; $5 million of this issuance is new money debt and $13.6 million will permanently finance outstanding bond anticipation notes maturing in June 2020....

Summary