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Town of Chatham News & Updates

Posted on: March 8, 2022

Chatham Retains AAA Bond Rating by Standard & Poor's Global

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The Town of Chatham AAA Bond Rating was reaffirmed by Standard & Poor’s on March 7, 2022 and with a “Stable” Outlook following a ratings review call with Town Manager Jill R. Goldsmith, Finance Director Alix Heilala, S&P analysts and the Town’s financial advisors to discuss the issuance of General Obligations (“GO”) Bonds in the amount of $11.675M. The bond proceeds will finance the Town’s wastewater projects and refund the GO Bonds of 2012.

AAA is the highest bond rating for municipalities.

The report states, “Chatham’s GO bonds are eligible to be rated above the sovereign because we think the town can maintain better credit characteristics than the nation in a stress scenario.” The rating further reflects S&P’s opinion of Chatham’s:

  • Strong economy
  • Strong budgetary performance
  • Very strong budgetary flexibility
  • Very strong liquidity
  • Very strong financial management, with strong financial policies
  • Adequate debt and long-term liabilities
  • Strong institutional framework score.

The report also notes that “Chatham is in the preliminary planning and assessment states of climate-resiliency efforts; it continues to identify project funding to mitigate these risks, which we view as positive.”

Town Manager Jill R. Goldsmith said in an email to Select Board members notifying them of the affirmation, “Our conservative budgeting, COVID Financial Recovery Plan, cyber security and coastal resiliency planning efforts contributed to maintaining our S&P bond AAA rating and with a stable outlook!”

The GO bond bids are scheduled for issuance on March 9, 2022. The Rating is AAA/Stable is for both the new issuance and affirmed for outstanding GO Bonds. The Bond Award is scheduled for the Select Board meeting of March 15, 2022.

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