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

S&P Global Ratings raised its underlying rating to 'A+' from 'A' on Methuen, Mass.' general obligation (GO) debt outstanding. The outlook is positive. The rating change reflects our view of an improved financial management environment and a stronger reserve position over the past several years. In December 2018, the city issued $4.0 million in deficit financing notes, following deficits in its school department that reduced available reserves to approximately $599,000. At the close of fiscal 2020, its available reserves improved to $11.2 million, or 6.3% of operating expenditures. The city could face additional financial pressure from a contract the remains in arbitration, but we believe any financial deterioration stemming from the arbitration is a one-time event reflecting the financial management

...S&P Global Ratings raised its underlying rating to 'A+' from 'A' on Methuen, Mass.' general obligation (GO) debt outstanding. The outlook is positive. The rating change reflects our view of an improved financial management environment and a stronger reserve position over the past several years. In December 2018, the city issued $4.0 million in deficit financing notes, following deficits in its school department that reduced available reserves to approximately $599,000. At the close of fiscal 2020, its available reserves improved to $11.2 million, or 6.3% of operating expenditures. The city could face additional financial pressure from a contract the remains in arbitration, but we believe any financial deterioration stemming from the arbitration is a one-time event reflecting the financial management environment prior to the hiring of the new chief administrative and financial officer (CAFO) and adoption of new financial management policies. The positive outlook reflects the uncertainty...

Summary