Moodys renews credit rating

Post date: Mar 24, 2017 1:14:19 PM

Excerpt below: Full report attached

Williamstown has a very strong credit position, and its Aa1 rating exceeds the median rating of Aa3 for cities nationwide. The notable credit factors include a robust financial position, and a manageable pension burden with an extremely small debt liability. It also incorporates a wealthy socioeconomic profile with an adequate tax base.

Finances: The financial position of the town is very strong in comparison to the assigned rating of Aa1. The net cash balance as a percent of revenues (67.5%) far surpasses the US median and rose significantly from 2013 to 2016. Moreover, Williamstown's available fund balance as a percent of operating revenues (29.7%) is on par with other Moody's-rated cities nationwide.

Debt and Pensions: The town has affordable debt and pension liabilities, which are aligned with its Aa1 rating. The net direct debt to full value (0.3%) is materially below the US median. Also, the Moody's-adjusted net pension liability to operating revenues (0.77x) is favorably lower than the US median.

Economy and Tax Base: The town has a very healthy economy and tax base, which are consistent with its Aa1 rating. Williamstown's full value per capita ($133,405) is above the US median. In addition, the median family income equals a robust 151.3% of the US level. Lastly, the total full value ($1 billion) is weaker than other Moody's-rated cities nationwide .

Management and Governance: Surplus operating margins demonstrate strong financial management. Advantageously, on average, Williamstown ran surpluses even as the tax base remained stable.