S&P Global Ratings assigned its 'SP-1+' short-term rating to Groton, Mass.'s $12.6 million bond anticipation notes (BANs). At the same time, we affirmed our 'AAA' rating on the city's outstanding general obligation (GO) debt. The outlook is stable. The town's full-faith-and-credit pledge also secures existing debt; depending on the project, the debt could be subject to Proposition 2 1/2 limitations. We have not made a rating distinction between the town's limited-tax GO pledge and general creditworthiness. Despite limitations imposed by the commonwealth levy-limit law on a portion of the bonds, the tax limitation imposed on the town's ability to raise revenue and the fungibility of those resources are already embedded in our analysis of its financial and economic conditions. The
