Portsmouth scores coveted AAA bond rating
For the first time in history, Portsmouth, RI has achieved the highly acclaimed triple-A rating following a review by Standard & Poor's Rating Services on the Town's outstanding general obligation bonds and long-term rating, according to a news release distributed this afternoon by John Klimm, the Town Administrator.
In the release, Town Council President Jim Seveney said, "This is particularly rewarding given the financial challenges we have faced the last few years and is affirmation that the Town is moving in the right direction. The AAA rating reflects our absolute commitment to honor our fiduciary responsibility to our residents and taxpayers and is a reflection of the hard work of our Town and school leaders over the last two years."
S&P credit analyst Timothy Little is quoted as saying, "The stable outlook reflects our view that management will remain proactive and make the necessary adjustments to produce at least balanced operations as it has demonstrated while adding to available general fund reserves." Little goes on to say, "We do not expect to change the rating within the two-year outlook horizon."
"The basis for the rating upgrade was attributed in part to our strong management, financial policies, and our consistent ability to maintain balanced budgets while increasing our fund balance," Klimm said.
the AAA rating is the highest a community can receive, and reflects the Town's sound financial management, according to the release. Only a small percentage of communities throughout the United States have an AAA rating. Portsmouth becomes only the second RI community to obtain an AAA rating. In nearby Massachusetts, only 29 of the 351 communities have an AAA rating.
A Triple-A rating has a direct and positive impact on the Town's residents. Funds borrowed carry a much lower interest rate due to the AAA rating. Jim Lathrop, the Town's Finance Director, said, "This is Portsmouth's financial report card, and it is nothing but A's. It is gratifying to work for a community that takes its financial health seriously."
Editorial note: Written (with glee) from a press release.