Politics & Government

Salem Bond Rating Upgraded

Standard and Poor's cited Salem's strong fiscal management.

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Standard & Poors has upgraded the town of Salem's bond rating from AA to AA+.

The rating agency upgraded the rating as part of a review of Salem's finances ahead of the sale of bonds. The review cited strong liquidity and strong fiscal municipal management.

According to the town of Salem, the review by Standard & Poor's resulted in the upgrade due to:

  • Strong economy, supported by a stable property tax base and participation in the Boston-Cambridge-Newton metropolitan statistical area (MSA);
  • Very strong budgetary flexibility, with an available general fund balance of about 21% of expenditures at the close of fiscal 2013;
  • Strong budgetary performance, with consistent operating results in the town's general and total governmental funds;
  •  Very strong liquidity, providing sufficient cash to cover both debt service and expenditures;
  • Strong management conditions, with good financial policies and practices; and
  • Adequate debt and contingent liability position.
The S&P report included this summary of the economic conditions:

"Salem, with an estimated population of 28,750, is situated in Rockingham County in southern New Hampshire. Thetown is located off Interstate 93 midway between Boston and Concord. Although residential in nature, Salem isconsidered a regional retail destination, serving southern New Hampshire and northern Massachusetts' MerrimackValley region with more than six million square feet of retail space. Rockingham Mall is Salem's most prominent retaildestination, with more than 1.2 million square feet of retail space. The town has a strong economy and also maintainsone of the stronger industrial bases in the state, with three industrial parks catering to a wide variety of industries.Commercial/industrial properties represent about 30% of the tax base, and values have been fairly stable the past few years."

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