Town of Wrentham Unaffected Thus Far by Credit Rating Woes

Though area towns have seen the repercussions of the recent U.S. credit-rating downgrade by Standard and Poor's, Wrentham has not been affected yet, according to Town Administrator William Ketcham.

Ketcham said Wrentham's credit rating remains at AA.

"We have not had any word to the contrary," he said.

The recent issues are not the only thing that could bring down the town's rating. Voters at the June town meeting decided to allocate money from the stabilization fund to the schools, police and fire departments and public health nurses, a move that some warned could cause a downgrade.

Ketcham, though, said there has been no reaction to that move. The stabilization fund, he said, is one of the factors considered in credit ratings.

"They also look at the value of property in the town, the town's willingness to raise revenue and its contractual obligations," he said.

He said such ratings are reviewed frequently.

"Most rating agencies say that the ratings are continually being watched," he said. "If they're alarmed, they generally put out an announcement that the rating is under review."

The rating is a judgment on the town's credit-worthiness. Should it change, though, the town would not see much of an effect on its outstanding debt.

"It has some effect if someone owned a bond and wanted to put our debt on the market," Ketcham said. "The only direct effect it would have on the town would be if the town was in the market to put out a bond."