Standard and Poors Has Rated Provincetown ‘Double A Plus’ During Recent Review

PROVINCETOWN- The town of Provincetown has scored a higher Standard and Poors (S&P) rating for the 2018 year, leading to the price of bond payments decreasing for municipal projects.

“It actually means you pay less [as part of your rate of interest] when you go out to bond… when the town takes on debt for projects. The higher your bond rating, the less the interest is that you wind up paying. What it really [serves as is] a measure of the quality of the work, and the reserves in [terms of] your financial stability [as a town],” says Provincetown Town Manager, David Panagore.

Provincetown started last year with a ‘double a rating’, and has now gone up to a ‘double a plus’ in part to its advancements in economy, budgetary flexibility and liquidity, and strong areas of budget management performance.

Pangore credits the achievement to “the leadership of the Board of Selectmen, and our finance committee, [as they have] made it a priority in terms of maintaining and improving our financial condition. Over the last two years we have had a change up in our financial team, and we have a strong financial team in place. Our town Treasurer, our town Finance Director, and what they have been able to do is put together financial policies, and we now have is a full set in place that we didn’t have before.”

S&P rated the town weak in its debt and contingent liability profile as a result of the town’s large pension and OPEB obligations.

For further increases in bond ratings, S&P is recommending that the town continue to grow their reserves and improve its debt liability profile.

BY: JOHN BONDAREK- Cape Cod.Com News Center

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