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

S&P Global Ratings raised its long-term rating on North Adams, Mass.' general obligation (GO) bonds to 'A' from 'A-' based on improving reserves, stronger budgetary performance, and increasing property valuations. The outlook is stable. The upgrade largely reflects the city's marked improvement in financial operations, which, in turn, raised budgetary reserves to much stronger levels. Additionally, the city's property tax base valuations improved in 2017 to their highest levels in over a decade, which will provide the city the budgetary flexibility to sustain positive budgetary performance. The city's full-faith-and-credit pledge, subject to the limitations of Proposition 2-1/2, secures the bonds. Despite the limitations imposed by the state levy limit law, we did not make a rating distinction for the limited-tax

...S&P Global Ratings raised its long-term rating on North Adams, Mass.' general obligation (GO) bonds to 'A' from 'A-' based on improving reserves, stronger budgetary performance, and increasing property valuations. The outlook is stable. The upgrade largely reflects the city's marked improvement in financial operations, which, in turn, raised budgetary reserves to much stronger levels. Additionally, the city's property tax base valuations improved in 2017 to their highest levels in over a decade, which will provide the city the budgetary flexibility to sustain positive budgetary performance. The city's full-faith-and-credit pledge, subject to the limitations of Proposition 2-1/2, secures the bonds. Despite the limitations imposed by the state levy limit law, we did not make a rating distinction for the limited-tax GO pledge given the city' flexibility under the levy limit. Certain GO bonds are rated pursuant to its eligibility under the Massachusetts Chapter 44A Qualified Bond Act. The city's...

Summary