STANDARD & POOR’S RATINGS SERVICES RAISED ITS RATING ON KITTERY’S MAINE’S GENERAL OBLIGATION DEBT BY ONE NOTCH TO ‘AA+’ FROM ‘AA’
BOSTON (Standard & Poor’s) March 7, 2014–Standard & Poor’s Ratings Services said it raised its rating on Kittery, Maine’s general obligation (GO) debt by one notch to ‘AA+’ from ‘AA’, based on its local GO criteria released Sept. 12, 2013.
“The stable outlook reflects our view of Kittery’s focus on maintaining strong operating flexibility,” said Standard & Poor’s credit analyst Victor Medeiros. “We believe an improved economic outlook and consistent operating profile will result in balanced operations.” The rating report states that:
- Kittery’s projected per capita effective buying income at 117% of the U.S. and per capita market value of $155,838.
- Adequate budgetary flexibility, with audited fiscal 2013 reserves of $4.1 million, or 16% of expenditures.
- Budgetary performance is strong; surplus in the general fund in fiscal 2013 of $286,000, or 1.1% of expenditures.
- Liquidity is very strong, with total government available cash at 18% of total governmental fund expenditures and roughly 7x debt service.
- The town has strong access to capital markets to provide for liquidity needs, if necessary.
- Management conditions as strong with good financial practices.
- Debt and contingent liability profile is strong; overall net debt is a low 1.7% of total governmental fund revenue, and principal amortization is aggressive, at 64% over 10 years.