...S&P Global Ratings assigned its 'SP-1+' short-term rating to the Town of Grafton, Mass.' $17 million general obligation (GO) bond anticipation notes (BANs), maturing May 14, 2021. S&P Global Ratings also affirmed its '##+' long-term rating, with a stable outlook, on the town's existing GO debt. The short-term note rating reflects our criteria for evaluating and rating BANs. In our view, Grafton maintains a very strong capacity to pay principal and interest when the notes come due. The town has what we view as a low market risk profile because it has strong legal authority to issue long-term debt to take out the notes and is a frequent issuer that regularly provides ongoing disclosure to market participants. Grafton's full-faith-and-credit pledge, subject to the limitations of Proposition 2 1/2, secures the existing bonds. We understand that the town voted to exclude the debt service on the notes from the limits of Proposition 2 1/2, but we do not make a rating distinction, as we rate the...
