Fitch assigns ‘AA+’ rating to Mass. bonds

NEW YORK – Fitch Ratings last week assigned an “AA+” rating to two Massachusetts general-obligation bonds totaling nearly $680 million. The bonds, both issued in 2014, were scheduled to sell through negotiation last week.
Additionally, Fitch also affirmed an “AA+” rating on approximately $19 billion of outstanding Massachusetts-guaranteed bonds.
The rating outlook for all the bonds is stable.
In a statement, the ratings agency said that Massachusetts has a “broad and diverse economy” with the third-highest personal income per capita in the nation. The state’s unemployment rate remains below that of the nation, education levels are high, and population growth has approximated that of the U.S. in the past decade.
Fitch also said that the state has benefited from conservative budgeting and sound financial practices over time. A limitation on the use of capital gains-related tax revenue has reduced the volatility of economically sensitive revenues in the budget, and Massachusetts has shown a commitment to reserve funding.
The state’s financial position has stabilized in recent years, with solid revenue recovery following a period of steep decline in the recession, Fitch said. Fiscal 2013, which ended July 1, benefited from an increase in overall tax revenue growth of 5.6 percent. •

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