Moody's Affirms Canton's Financial Rating

The financial rating institution Moody’s affirmed Canton’s debt as Aa2 Monday, according to the website. The rating comes in advance of the sale of $6.9 million in bonds the town is selling to finance improvements to Canton High School athletic fields, road and drainage improvements and replacement of roofs.

The positive report was based on “the town's healthy financial position which is supported by strong reserve levels. The rating also incorporates the moderately sized tax base with above-average wealth levels, and a manageable debt profile,” the website said.

Moody’s noted Canton’s strengths include its conservative financial practices and a stable tax base while challenges include the need for budget approval to meet increasing spending pressures. The town’s financial rating could improve, Moody’s said, with strengthening of the tax base. If the town chose to deplete the General Fund, however, or if its tax base and demographic profile deteriorated, the rating could fall.

The Moody’s rating of a town's creditworthiness determines how lenders and other financial institutions view the town and affects, among other things, the interest rate at which they loan the town money.