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

Standard&Poor's Ratings Services assigned its 'AA' long-term rating and 'AA-' underlying rating to Methuen, Mass.' series 2015 general obligation (GO) state qualified school project bonds. We also assigned our 'SP-1+' short-term rating to the city's bond anticipation notes (BANs). The outlook on all the ratings is stable. A pledge of the city's full faith and credit, subject to Proposition 2-1/2 secures the bonds. Officials will use the bond proceeds for a high school revitalization project. The city authorized $99.1 million for the project. Of that amount, 68.84% is eligible for reimbursement from the Massachusetts School Building Authority (MSBA). Proceeds from this sale will redeem $15 million of outstanding BANs and extend the maturity of $5 million in BANs

...Standard & Poor's Ratings Services assigned its '##' long-term rating and '##-' underlying rating to Methuen, Mass.' series 2015 general obligation (GO) state qualified school project bonds. We also assigned our 'SP-1+' short-term rating to the city's bond anticipation notes (BANs). The outlook on all the ratings is stable. A pledge of the city's full faith and credit, subject to Proposition 2-1/2 secures the bonds. Officials will use the bond proceeds for a high school revitalization project. The city authorized $99.1 million for the project. Of that amount, 68.84% is eligible for reimbursement from the Massachusetts School Building Authority (MSBA). Proceeds from this sale will redeem $15 million of outstanding BANs and extend the maturity of $5 million in BANs for another year. It is anticipated that proceeds from the MSBA will redeem the outstanding BANs. The 'SP-1+' short-term rating reflects our view that the city maintains a very strong capacity to pay principal and interest when...

Summary