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8i �i <br /> � <br /> ; �� . � � ': „' <br /> �.. III �. ,: '.,,�� .. <br /> Rating Action: Moody's assigns Aaa to Lexington, MA's GO bonds; outlook stable <br /> 05 Feb 2024 <br /> New York, February 05,2024—Moody's Investors Service has assigned a Aaa rating to the Town of Lexington, <br /> Massachusetts's approximately$9.5 million General Obligation Municipal Purpose Loan of 2024 Bonds. Moody's <br /> maintains theAaa issuer,general obligation unlimited tax(GOULT),and general obligation limited tax(GOLT)ratings <br /> for the town.At the end of fiscal 2022,the town had about$214 million of debt outstanding.The outlook is stable. <br /> RATINGS RATIONALE <br /> The Aaa issuer rating reflects Lexington's dynamic local economy and exceptional management,which has resulted <br /> in very strong financial performance, robust reserves and liquidity and the prospect that these results will be replicated <br /> through the medium term.Additionally, Lexington benefits from a very a�luent tax base and proximity to Boston, <br /> including area universities which have contributed to the town's biotech industry. Long term liabilities are currently <br /> moderate and will increase in the medium term inclusive of some significant capital projects. Fixed costs are low and <br /> will likely increase although future debt service will be partially o�set by projected revenue growth. <br /> TheAaa GOULT and GOLT ratings are the same as the issuer rating because of the town's full faith and credit pledge <br /> and the town's ability to override the tauc levy limits of Proposition 21/2. <br /> RATING OUTLOOK <br /> The stable outlook reflects Lexington's local economy characterized in its strong economic growth as part of the <br /> Boston metro area, biotech industry presence and very high resident incomes and property wealth.The stable outlook <br /> also incorporates the town's high reserves which have been maintained over several years while continuing to fund <br /> pension and OPEB liabilities. <br /> FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING <br /> - Not applicable <br /> FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING <br /> - Significant deterioration in reserves and liquidity <br /> - Increase in long-term liabilities exceeding current capital plans <br /> - Contraction of local economy <br />