Chelmsford Maintains AA-Plus Bond Rating

Chelmsford ability to borrow funds and repay those obligations both appear stable, according to the Standard & Poors Rating Service.

The credit rating service recently affirmed Chelmsford’s AA+ bond rating on long-term outstanding general obligation bonds and assigned a new AA+ rating to Chelmsford’s 2015 general obligation bonds. The ratings essentially mean that Chelmsford can expect a low interest rate when the town borrows money in the future.

“A strong credit rating report results in a lower borrowing cost (lower interest rate) for a community,” Town Manager Paul Cohen explained. “ The savings can then be reallocated to providing other essential local governmental services. An analogy would be one’s home or car loan interest rate. A lower interest rate results in lower monthly payments, which frees up money for other purposes.”

Standard and Poors cited Chelsmford’s “Very strong management, with ’strong’ financial policies and practices” according to the agency’s standards. Additionally, the town was recognized for setting “conservative budgets” with assumptions based on historical-trend data.

“The stable outlook reflects our view of Chelmsford’s continued strong budgetary flexibility and performance, supported by what we consider a very strong underlying economy and management,” the report reads.

You can read more from the report on the Town of Chelmsford website.