Great Barrington — For the seventh year in a row, the town has maintained a AAA bond rating from S&P Global Ratings, formally known as Standard & Poor’s. According to the state’s Department of Revenue, an AAA rating is the highest rating assigned by S&P, meaning “the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.”
The reaffirmation of the rating was announced by town Treasurer and Collector Alicia Dulin during the Selectboard meeting on Monday, October 30. “Getting an AAA rating and continuing it is not a small feat,” Selectboard Chair Stephen Bannon said. “We should all be proud of that and thank the staff for the work that they do.”
According to the state’s Department of Revenue website, the only other Berkshire County town to receive an AAA rating from S&P is Lenox, which has received its AAA rating since 2017. As for other municipalities, as of this year Richmond and Stockbridge have all received AA+ bond ratings from S&P; Lee and Otis have received AA bond ratings; Adams and Cheshire have received AA- bond ratings; Pittsfield received an A+ bond rating; and North Adams received an A rating.
According to the state’s Department of Revenue, an AA rating “differs from the highest-rated obligations only to a small degree” and the “obligor’s capacity to meet its financial commitment on the obligation is very strong.”
As for an A rating, this rating “is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.”
Both Lenox and Pittsfield also have bond ratings with Moody’s Investors Service, along with Williamstown. With Moody’s, Lenox has an Aa2 bond rating, Pittsfield has an A1 bond rating, and Williamstown has an Aa1 bond rating.
Back at the October 30 meeting, the Selectboard unanimously approved the sale of over $11 million of General Obligation Municipal Purpose Loan bonds to UBS Financial Services Inc., a multinational investment services company that is based in Switzerland but has offices in Pittsfield, Springfield, and Worcester.
According to an executive summary by Town Manager Mark Pruhenski, on October 25 the town accepted competitive bids for capital and sewer projects that had previously been authorized at town meetings to be funded by borrowing authorizations. Pruhenski wrote that the town received a total of 10 bids and that UBS Financial Services Inc. was the winning bidder on the bonds “with a true interest cost of 3.798104.”
In his executive summary, Pruhenski lists various purchases for the town’s Department of Public Works that will be financed with the proceeds of the bonds:
- Loader, borrowing amount of $235,000.
- Backhoe, borrowing amount of $145,450.
- Sewer cleaner, borrowing amount of $109,650.
- Excavator, borrowing amount of $81,750.
- Truck lift, borrowing amount of $79,500.
- Park equipment, borrowing amount of $55,000.
More information about the bonds can be found here.
