In the midst of all the bad economic news these days, it very encouraging to see a positive financial report about Franklin, MA!
Franklin Treasurer/Collector James Dacey recently announced that Franklin’s bond rating has been upgraded by Standard & Poor’s, the internationally-respected organization that evaluates the creditworthiness of municipalities.
The better credit rating from Standard & Poor’s enabled Franklin to obtain a very favorable interest rate on a long-term debt instrument issued by the town to finance recent capital expenditures (including construction of the new senior center and new central fire headquarters.)
The higher bond rating was a vote of confidence by Standard and Poor’s in the town’s fiscal management and Franklin’s overall financial condition.
Here’s the analysis provided by the Milford Daily News:
“In effect, Standard & Poor’s . . . told Franklin it has been doing a great job in handling its finances.
The rating puts Franklin in the top 20 percent for bond ratings, Dacey said.
In a summary of its findings, Standard & Poor’s outlined its reasons for Franklin’s rating:
* An advantageous location along the high-tech Interstate 495 corridor, with access to Boston by commuter rail, as well as to other regional employment centers;
* Very strong household income factors and below-average unemployment;
* Good financial position despite substantial declines in available reserves; and
* Low debt burden with a rapid amortization schedule and limited additional capital needs.
The report noted Franklin’s relatively low unemployment rate, 5.5 percent as of December, and “very strong” income levels; Franklin’s 2008 median household income was 160 percent of the national level.”