...Standard & Poor's Ratings Services assigned its '###' rating and stable outlook to Kennebunk Town, Maine's series 2016 general obligation (GO) bonds and affirmed its '###' rating, with a stable outlook, on the town's existing GO debt. The town's full-faith-and-credit pledge secures the bonds. Although the town is not restricted to a particular revenue source, Kennebunk could levy ad valorem property taxes for bond repayment, subject to limitations of the state's LD-1 legislation. Despite state limitations on levy limits, we did not make a rating distinction for the limited-tax GO pledge due to the town's flexibility under the levy limit. We understand officials plan to use series 2016 bond proceeds to fund various infrastructure and tax-increment financing projects and finance the purchase of new vehicles and equipment, in-line with the town's capital improvement plan (CIP). We rate the town higher than the nation because we believe Kennebunk can maintain better credit characteristics than...
