Mayor Michael J. McGlynn today announced that Moody’s Investors Service has upgraded to Aa3 from A1 the rating on the City of Medford’s general obligation debt. The upgrade affects $36.5 million of outstanding rated debt, and reflects the City’s satisfactory financial position. It has experienced a material increase in reserves over the past five years, a sizeable tax base with above average wealth levels, and manageable debt burden, according to Moody’s.
An example of what can make a rating go up is significant growth of reserve levels while an example of what could make a rating go down is a trend of operating deficits resulting in reserve declines.
“With a month to go, our team continues to work to strengthen the finances of this community. We are very pleased that Moody’s upgraded our bond rating and I would emphasize, once again, that now is the time to move the equivalent dollar amount of 5% of our operating budget, from our reserves, into the stabilization account. Seven and half million dollars and we will become an even stronger community financially, yet still have significant reserves, with a strong forecast for our future growth,” said Mayor McGlynn.