Holliston Receives “AAA” Bond Rating

From Town Administrator, Travis Ahern

Standard & Poor’s Global Ratings (S&P) Upgrades Town of Holliston’s Bond Rating to AAA

Wednesday, June 30, 2021:  Holliston, MA:  The Town of Holliston has received an upgraded bond rating from Standard & Poor’s Global Ratings (“S&P”) to AAA, the highest available long-term rating on its outstanding general obligation (GO) bonds (upgraded from AA+).

In the Rating Report, S&P noted: “The rating action reflects the Town’s maintenance of higher reserve levels (currently at 14.8% of general fund expenditures) than it historically maintained, which we expect will continue. We also believe the town had demonstrated a significant willingness to address its pension and other postemployment benefit (OPEB) obligations, through overfunding of the annual contribution, and its adherence to strong financial management policies and practices.”

“This AAA rating is an acknowledgement of the hard work and discipline displayed by the past and present Select Board, Finance Committee, and Town Meeting members,” said Town Administrator Travis Ahern. “It is also a well-deserved recognition for the Town’s exceptional financial team, specifically: Mary Bousquet, Treasurer/Collector, Sharon Emerick, Town Accountant, and Kathryn Peirce, Principal Assessor. This financial team worked for many years with the support of the former Town Administrator, Paul LeBeau, who also deserves a great deal of credit with laying the foundation for this upgrade”

Overall, S&P rated Holliston as “very strong” for Economy, Financial Management, Liquidity and Debt Profiles. The Rating Report demonstrated an upgrade  to “very strong” for the Management category, noting: “We view the town’s management as very strong, with strong financial policies and practices under our FMA methodology, indicating financial practices are strong, well embedded, and likely sustainable…We understand that Holliston, under its new town administrator, is reviewing its formal policies and planning documents.”

The Rating Report left room for improvement with “strong” ratings for Budgetary Flexibility and Institutional Framework. Additionally, though S&P considers Holliston “stable,” they do list a “Downside Scenario” for the Town to consider in future actions: “If the town’s reserves were to fall below levels comparable to those of ‘AAA’ rated state peers, or if the future debt issuance materially alters the town’s debt profile, we could lower the rating.”

The full S&P Ratings Report is available on the Town’s website: https://www.townofholliston.us/town-links/pages/financial-policies-and-info

Any request for additional information should be directed to Travis Ahern, Town Administrator at ahernt@holliston.k12.ma.us

Press Release

3 Comments

  1. John Cronin, Select Board on July 1, 2021 at 8:37 am

    So very proud of the work our Town Administrator and his team have put into gaining this distinction! Outstanding work!

  2. Michelle Zeamer on July 1, 2021 at 9:08 am

    Thank you to Travis Ahren, Sharon Emerick, Mary Bousquet, Kathryn Peirce, the Select Board, the Assessors, and my fellow Finance Committee members for your hard work, dedication, and diligence. But most of all, thank you to Town Meeting because you are the ones who approve budgets. I want to especially thank everyone who attended Town Meeting this past May and overwhelmingly voted against Warrant Article 9. Your ability to understand the truth, which was confirmed by Hollistons’s improved bond rating, is very appreciated.

  3. Christina Hein on July 1, 2021 at 9:30 am

    The Town of Holliston is in a very strong position for the future following yesterday’s assignment of a AAA bond rating. Many thanks are due to our Town Administrator and his financial team for their efforts to reach this impressive status.

    Tina Hein, Select Board Chair

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