February 18, 2015, Lawrence, MA- Last week, Moody’s Investors Service upgraded the City of Lawrence’s credit rating to A3 from Baa1. This rating upgrade is the first time Lawrence has received an “A” level rating from Moody’s since 1986. The rating upgrade with a stable outlook validates the city’s financial recovery and will directly impact residents with favorable interest rates by municipal bond buyers, which will lessen the city’s overall annual debt amount and free up much needed budget dollars for public safety and infrastructure.
The rating upgrade exemplifies the city’s hard work and commitment to improve its financial practices since the appointment of a state fiscal overseer in 2010. For the fourth consecutive year the City budget was passed on time and structurally balanced without the use of one-time reserves and the city has generated positive operating results for five years in a row. “I want to recognize and thank all City of Lawrence employees and elected officials who played key roles in helping to achieve this success in both my Administration, and the previous one,” said Mayor Daniel Rivera. “Specifically, I want to recognize Mark Ianello, our Budget and Finance Director and former Fiscal Overseer Bob Nunes, who provided valuable guidance and leadership to the City in achieving this goal.”
The upgrade of the city’s rating to A3 recognizes the prudent management of the city’s financial position and its effort to build its reserves while continuing to pay down its outstanding debt. The city has stabilized its financial position through more conservative fiscal management, and improved financial policies, resulting in a larger reserve and healthier cash flow position.