S&P Reaffirms Salem's Bond Rating

SALEM, MA — The city of Salem has maintained strong financial health in 2016, according to a recent affirmation of the city's bond rating.

Standard & Poor's (S&P) Global Ratings recently affirmed the city's 'AA' long-term rating and stable outlook on the city's outstanding general obligation debt. The City of Salem stated in a press release Thursday that this 'AA' rating is the highest in the city's history.

“This rating affirmation is reflective of our dedication to positive economic growth, stable financial management policies, and sensible and sustainable budgeting practices,” said Salem Mayor Kim Driscoll in a press release.

The report cited Salem's strong economy, management, budgetary flexibility, liquidity and institutional framework as reasons for the rating. The report regarded Salem's budgetary performance and debt and contingent liability position as adequate.

Salem's total direct debt is $84.9 million, the report says. Of the city’s $84.9 million of debt, $20.1 million is self-supporting debt from sewer and water enterprise funds and $2.3 million will be reimbursed by the Commonwealth for previous school building projects.

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