Bangkok--21 Oct--Standard and Poor's
Standard and Poor's Ratings Services has assigned its 'SP-1+' rating to Braintree, Mass.' $122.1 million general obligation bond anticipation notes (BANs) and its 'AA-' long-term underlying rating to the town's general obligation debt outstanding. The outlook is stable.
"The ratings reflect a deep and diverse economic base within the town and access to more substantial markets throughout the greater Boston area; very strong median household effective buying incomes; and a very diverse, mature and sizable $6.1 billion tax base," said Standard & Poor's credit analyst Jeffrey Panger.
About $110 million of the series 2008 BANs will be issued on behalf of the Braintree Electric Light Department (BELD; A/Stable), including $104 million to refinance BANs outstanding due Nov. 13, 2008. The town will issue approximately $9 million for the water department, and $4 million for general purposes. The town's general obligation pledge secures the BANs, but we expect that the portions issued on behalf of BELD and the water department to be self-supporting from electric and water revenue, respectively. The BANs are due Aug. 14, 2009, and we believe the town will refinance them with long-term general obligation bonds upon maturity.
The town will issue the bulk of the BANs on behalf of and supported by BELD, which is constructing the 116 megawatt (MW), simple cycle gas turbine at its Thomas A. Watson Generating Station. BELD will retain 30% of the energy and capacity (34.8 MW), and has entered power supply agreements with six other Massachusetts municipal electric utilities and a New Hampshire electric cooperative for the remaining 70%.
Braintree (population 33,828), is 10 miles south of Boston. The city enjoys excellent access to major arteries, connecting it with Boston to the north, Cape Cod to the south and Providence, R.I., to the southwest. The Massachusetts Bay Transportation Authority's Red Line originates in Braintree, and two spurs of the Old Colony commuter rail line merge in the town. Braintree is a primarily residential town with a retail/commercial economic base. In addition to access to major markets in the region, Braintree itself has a sizable employment base, with a substantial health services presence.
The stable outlook reflects the town's adequate financial position and the expected support of most of the general obligation debt from electric utility operations.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site atwww.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Credit Ratings Search.
Media Contact:
Edward Sweeney, New York, (1) 212-438-6634
[email protected]
Analyst Contacts:
Jeffrey Panger, New York (1) 212-438-2076
Karl Jacob, New York (1) 212-438-2111