Cumberland gets bond rating upgrade to ‘AA+’ Bodes well for town when it comes to saving money on Public Safety Complex construction

CUMBERLAND — The town has received an upgrade in its bond rating from S&P Global, Mayor William Murray announced on Wednesday, an improvement that could save the town a significant amount of money when it goes out for bonding on its new Public Safety Complex later this year.

S&P Global upgraded the town from its prior rating of “A” on general obligation bonds to “AA+” with a “stable outlook” rating after a recent review of town finances, Murray said.

“This upgrade from S&P is a clear indication of the con-

tinued improvement in the Town’s financial strength,” Murray said while announcing the improvement.

“I am excited about the upgrade because when we go out to bond for our $12.5 million Public Safety Complex the savings will be very good for the town,” Murray said. Although how much the town will save in financing costs won’t be known unit the bond award process is complete, Murray said the savings could be in excess of $100,000 as a result of the rating upgrade.

“It opens it up for us to have more bidders on the bonding,” Murray said. And with more bidders, there will be more opportunity for favorable finance costs, he added. “I was extremely pleased with the upgrade,” he said.

When the town had the opportunity to undergo a review by S&P, Murray said the town’s financial consultants said the goal should be to at least maintain the town prior rating given all of the changes in municipal financ- ing in the market.

Murray in fact, had detected the bond rating company’s concerns over the state’s, at that time not resolved, budget impasse as a potential negative when the review was conducted.

Jason Parmelee, the town’s finance director, had the answers the rating agency was seeking, however, and in the end the review ended up being a positive step for the town.

Even the state’s budget problem, which has since been resolved, did not affect the outcome, he said. “They gave us the increase in the rating with the full knowledge that we knew how to handle the situation,” he said.

The improvement comes after Parmelee completes his first budget cycle with the town and Murray credited his finance director with helping to secure the rating improvement.

Murray noted the review was conducted as part of S&P’s regular monitoring of the town’s financial standing and the added statement of a stable outlook was supported by the company’s acknowledgement of “Cumberland’s strong reserves and adequate budgetary performance, strengthened by a very strong economy.”