Rating Action: 

Moody's assigns initial A1 to Templeton, MA GOs

04 Feb 2019

New York, February 04, 2019 -- Moody's Investors Service has assigned an A1 general obligation unlimited tax rating to the town of Templeton, Massachusetts's General Obligation Municipal Purpose Loan of 2019 Bonds.

RATINGS RATIONALE

The A1 rating incorporates a small but growing tax base, vastly improved financial position from just a few years ago, elevated debt burden, and above average pension liabilities.

RATINGS OUTLOOK

Moody's does not usually assign outlooks to local government credits with this amount of debt outstanding.

FACTORS THAT COULD LEAD TO AN UPGRADE

- Improvements to the tax base

- Sustained improvement in reserve levels

FACTORS THAT COULD LEAD TO A DOWNGRADE

- Significant decline in tax base

- Significant drop in reserves

LEGAL SECURITY

The bonds are secured by the town's general obligation unlimited tax pledge as debt service has been voted exempt from the tax levy limits of Proposition 2.5.

USE OF PROCEEDS

The bonds will fund elementary school construction and police station renovations.