Unemployment Low, Home Values High in Town

Graton has received an AA credit rating from Standard and Poor’s, often referred to as S&P, according to information released recently by the

This means that S&P believes the town has a “very strong capacity to meet financial commitments.” AA is the second highest rating level issued by S&P.

As of December 2011, unemployment in the town has fallen below both state and national levels at 5.3 percent. The median home value in Grafton is $315,000, 185% of the national level.

The town has a general fund surplus of $1 .4 million, roughly 3.2% of the budget. In light of the recent building project, this means that interest rates will be low for the bonds issued for the project.

The rating reflects several different factors. Grafton is a residential community that benefits from access to nearby cities, including Worcester, Boston, and Providence, R.I.

The town maintains strong income levels when compared with the national standard, and a stable revenue profile coupled with strong reserves. In addition, the town only has a moderate debt burden and an average principal amortization schedule.

The S & P ratings break down into these categories:

AAA: Extremely strong capacity to meet financial commitments.

AA: Very strong capacity to meet financial commitments.

A: Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

Standard and Poor’s considers Grafton’s financial practices “good” under its Financial Management Assessment methodology. The stable outlook given to Grafton implies that Grafton will maintain a very strong financial position in the future.

The rating will lead to competitive interest rates when bonding for capital projects. It also underscores the professional standards Grafton adheres to for fiscal management of tax dollars.