Hopkinton Retains Highest Bond Rating, Town Manager Reports

HOPKINTON, MA - Town Manager Norman Khumalo and Chief Financial Officer Tim

O'Leary reported on Friday that Standard & Poor’s Financial Services LLC (S&P)
Global Ratings has affirmed the Town of Hopkinton's strong AAA credit rating.

The AAA bond rating represents the highest level of creditworthiness a municipality can
achieve and reflects the excellent and stable financial condition of the town.

"Hopkinton retained its top-tier AAA bond rating from Standard & Poor’s, reflecting very
well on the town’s management through the COVID-19 emergency,” O'Leary said. “The
rating agency specifically noted Hopkinton's very strong financial management
practices and prudent budget management as key factors supporting our rating."

The high rating also allows the town to borrow money at the lowest commercial interest
rates possible. The town has retained its AAA credit rating for an issue of $4.9 million in
long-term bonds and $5.3 million in short-term bond anticipation notes planned for June.

The borrowings will support nine capital projects and acquisitions for the Hopkinton
Public Schools and other town departments. These were approved by voters at
Hopkinton’s 2022 Annual Town Meeting in May and at previous Annual Town Meetings.

“This borrowing will support the completion of projects the community supports,
including the Main Street Corridor project, major school and municipal renovations, and
the purchase of a new combination ladder and pumper truck for the Hopkinton Fire
Department," said Amy Ritterbush, chair of the Hopkinton Select Board. "The Select
Board has been focused on financial transparency and financial stability, and it’s good
to see the town rewarded for those efforts through savings on interest costs.”

The rating indicates a bond issuer’s financial strength to pay the principal and interest
in a timely fashion. S&P Global Ratings issues the AAA rating only when it considers a
creditor’s capacity to meet its financial commitment on its obligations to be extremely
strong.

"Given the bond market today, the AAA rating is saving Hopkinton between $200,000
and $250,000 in interest expense over the life of the borrowing, compared to what our
costs would be if we had the next lower rating,” said Treasurer Chris Heymanns.

“With the highest credit rating of AAA, Hopkinton obtains needed funds at the lowest possible interest rates, saving our taxpayers money when borrowing for critical projects," Khumalo added. "Top-notch town staff, capable and involved oversight by citizen boards and committees, and disciplined financial management policies and procedures are part of what make Hopkinton a strong choice for new businesses seeking a stable host community.”