The rating upgrade on Watertown, Mass.' bonds reflects the potential for continued significant tax base growth, economic diversification, and strong financial operations and position. Other rating factors include: The town's prime location among Boston's inner-ring cities, with easy access to the downtown area; A trend of strong tax base growth and economic diversification based on the availability of developable land; A trend of strong financial performance, with added financial flexibility provided by tax base growth and significant general fund and special revenue fund reserves; A low net debt burden offset by the state covering 60% of school debt; Manageable future capital needs; and Strong projected revenue growth allowing the town to limit future debt issuances. Watertown (population 33,284) is a
