LYNN — Moody’s has upgraded the city’s credit rating as Lynn continues to improve its financial situation.
According to Michael Bertino, the city’s chief financial officer, the bump from the city’s previous general obligation limited tax rating of A2 to A1 is a positive sign for Lynn’s financial future.
“We’re heading in the right direction,” Bertino said. “But we still have a long way to go.”
In a press release last week, Moody’s credited improvements in the city’s financial operations and reserve growth as reasons for the rating boost, adding that efforts to attract new development within the city have helped Lynn grow its revenues.
Moody’s also said another factor was the city’s repayment of deficit financing bonds, which released Lynn from state oversight in September.
“Based on what Moody’s saw, they recommended us for an improved rating,” Bertino said. “We still have much more work to do.”
Bertino said the biggest impact the improved rating has for the city is lowering the borrowing cost when it borrows money for things like buildings, roads, and schools.
He also noted that getting the city’s finances back on track was a collective effort that included the mayor, City Council, and other city officials.
“It takes discipline for all players involved to get in the direction towards an even higher rating,” Bertino said. “It’s a collaborative effort and I’m happy to be a part of that.”
City Council President Jay Walsh said that the city will continue the effort to improve its financial standing. He also credited the collaborative work of the council, the mayor’s office, and the city’s financial department for the positive momentum shown by the improved credit rating.
“I was there when they downgraded us,” Walsh, who represents Ward 7, said. “It’s a testament to the work everyone did, trying to get the city to a better spot financially.”
Mayor Jared Nicholson similarly described the collaborative effort of city officials as a vital factor in Lynn’s improved financial standing.
“This is a positive reflection of the city’s consistent financial progress,” Nicholson said. “I appreciate the entire city team’s efforts in maintaining the fiscal discipline that’s being recognized with this upgrade.”
The next step for the city, which Moody’s said has $77.6 million in outstanding debt, would be to achieve an AA rating.
