Hingham Credit Rating Under Review by Moody's

Hingham is among 12 towns or cities in the state whose credit ratings are in danger of being lowered because of the federal debt crisis, according to a Bloomsberg Businessweek article.

Moody’s Investors Service said last week it plans to review and potentially downgrade the credit ratings of 162 local governments in 31 states, according to the article. Those communities were put on a watch-list by Moody's,

In Massachusetts, the threatened communities along with Hingham include Acton, Bedford, Belmont, Brookline, Concord, Dover, Lexington, Newton, Wayland, Wellesley and Weston.

Hingham Town Administrator and former Town Accountant Ted Alexiades  is not concerned by the news.  Alexiades said the affect on Hingham residents would be minimal if Hingham’s credit rating was lowered by Moody’s because  the town still has two other credit rating agencies, Fitch Ratings and Standard & Poor’s.

“Fitch has currently reaffirmed our AAA and Standard & Poor’s also has reaffirmed our AAA,” Alexiades said.  “Moody’s is the only of three which has indicated that they may in fact provide a negative outlook to many of their AAA’s across the board in the United States of America.”

According to Alexiades, Hingham receives very little income from the Federal Government.

“We think that our AAA standing is as it is because we manage our finances incredibly well and live within our means. If we were to be reduced by Moody, there is a potential that when we issue debt in the future, the rate that would we would receive on it, will be higher than a AAA and that rate would be as high as a quarter of a point more.” 

State Representative Garrett Bradley said the Town of Hingham does a very good job of managing its finances.

"I am confident that local officials and Town Meeting will continue to exercise sound fiscal policy moving forward," Bradley said.  "Its excellent bond rating history, budget management practices and past fiscal performance makes Hingham a great financial investment even during these uncertain economic times.”

Earlier this year, the  received the Certificate of Excellence in Financial Reporting award for the 15th consecutive year from the Government Finance Officers Association for fiscal year 2010. The award, which was established in 1945, is the highest honor given in the area of governmental accounting and financial reporting.