Moody’s Upgrades Medford’s Bond Rating

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.

– Submitted by Mayor Michael McGlynn’s office