Danvers Receives “AAA” Bond Rating
S&P Global Ratings Upgrades Danvers to Highest Possible Bond Rating
Danvers, MA – Town Manager Steve Bartha announced that Standard & Poor’s Global Ratings (“S&P”) has upgraded the Town of Danvers general obligation bond rating from AA+ to AAA.
In their 7/26/2019 Rating Summary, S&P noted that the upgrade reflected their view of “Danvers’ consistently balanced financial results, which have led the Town to maintain a strong reserve position over the past several years, and through various business and economic cycles. Also underpinning the rating is Danvers’ very strong management conditions, with strong policies and plans that the town adheres to and updates accordingly.”
The upgrade will pay immediate dividends for the Town, as the timing coincides with the issuance of $20.0 million in general obligation bonds related to the Smith Elementary School project. Higher rated communities borrow funds at lower interest rates.
“This AAA rating is an acknowledgment of the hard work and discipline displayed by the current and prior Selectmen, Finance Committee members, and Town Meeting members over many years,” said Town Manager Steve Bartha. “It is also a credit to the strong financial foundation built by former Town Manager Wayne Marquis and his team.”
The “AAA” rating is the highest bond rating possible and reflects the excellent and stable financial condition of the Town. The rating indicates a town’s financial strength to pay the principal and interest in a timely fashion. The Town of Danvers was previously rated “AA+”, but after a recent presentation made by Town officials to S&P, the credit rating agency determined that, based on the Town’s policies, practices, strong track record, and reserves, an upgrade to “AAA” was warranted.
“The Town Manager and his team provided the S&P analysts with a financial presentation and tour of Danvers last week,” said BOS Chair Dan Bennett. “Sitting in the room, it was clear to me that the analysts were impressed by our commitment to collaboration and partnership across departments, including the schools, the library, and our utilities. Danvers operates as a team, and the result is high quality services at affordable prices, and now we have the AAA rating to prove that Danvers is the excellent investment we always knew it was.”
The ratings report from S&P is available on the Town’s website: (https://www.danversma.gov/documents/sp-rating-town-of-danvers-july-2019/)