NASHUA – Standard & Poor’s (S&P) Financial Services reaffirmed the City of Nashua’s AAA bond rating as its highest rating possible, citing the city’s strong budgetary performance, strong city management and a strong economy.
Nashua has maintained its AAA rating with Standard and Poor’s since 2017.
“Nashua is one of only a few communities in the state that holds two AAA ratings both from S&P and Fitch,” said City Treasurer David Fredette.
Nashua mayor Jim Donchess.
S&P’s credit overview of Nashua showed the following impressive results:
• Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA);
• Very strong management, with strong financial policies and practices under our Financial Management Assessment (FMA) methodology;
• Adequate budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2019;
• Very strong budgetary flexibility, with an available fund balance in fiscal 2019 of 22% of operating expenditures;
• Very strong liquidity, with total government available cash at 49.3% of total governmental fund expenditures and 6.2x governmental debt service, and access to external liquidity we consider strong;
• Very strong debt and contingent liability position, with debt service carrying charges at 7.9% of expenditures and net direct debt that is 20.3% of total governmental fund revenue, as well as low overall net debt at less than 3% of market value, but a large pension and other postemployment benefit (OPEB) obligation; and
• Very strong institutional framework score.