Winchester's Credit Rating Remains Strong

For the past eight years Winchester has worked to improve its credit rating and rely less on free cash to shore up its budget gaps.

That diligence has earned Winchester a triple A bond rating – the highest possible score.

Having a top-notch rate has allowed the town to issue bonds on a wide array of debt – from to roof replacement projects and the – at the best available rates.

As the power struggle played out among lawmakers on Capitol Hill, Moody’s Investors Service announced last week its plans to review credit ratings of U.S. municipalities and other institutions due to the potential downgrade of federal government bonds, according to an AP report on Business Week.

Out of the 23 towns that have a triple A rating, Winchester, Boston and Cambridge are the only three towns that don’t have to worry about being downgraded.

“This is extremely significant,” said Selectman Roger Berman. “This comes from years of financial management and cleanup that the town has gone through over the last five to eight years."

Massachusetts municipalities slated for potential review include Lexington, Acton, Bedford, Belmont, Brookline, Concord, Dover, Hingham, Newton, Wayland, Wellesley and Weston. The Concord-Carlisle and Lincoln-Sudbury regional school districts could also face a review by Moody’s, according to the report.

“Even through these difficult economic times, Winchester is one of three towns that avoided the watch list and that’s very significant,” Berman said.

According to the AP report, the potential downgrade of the U.S. government’s triple-A credit rating is driving the potential reviews.

In the event of a federal government credit downgrade, each municipality would receive an individual review, with Moody’s looking at the city or town’s "direct and indirect reliance on federal spending, sensitivity to deteriorating macroeconomic conditions and vulnerability to disruptions in the financial markets,” according to the report.