Moody's Investors Service has assigned a MIG 1 rating to the City of Lowell's (MA) $2.5 million Bond Anticipation Notes, dated June 30, 2008 and payable September 19, 2008. Concurrently, Moody's has affirmed the city's A3 underlying long-term rating and removed the negative outlook, affecting roughly $161 million in outstanding long-term debt. All of the city's rated outstanding longterm debt is authorized under the Commonwealth of Massachusetts' Qualified Bond Program (QBP), which is rated Aa3 with a stable outlook. The current note issue is secured by the city's limited tax pledge as debt service has not been voted exempt from the limitations of Proposition 2 ½. The MIG 1 rating incorporates the city's demonstrated access to capital markets, its satisfactory underlying credit profile and the expectation that the notes will be permanently financed by bonds issued under the QBP. The A3 rating reflects the city's improving financial position, which remains strained but has begun to stabilize after several years of reserve draws, as well as a sizeable and growing tax base and a manageable debt profile with significant future borrowing plans. Removal of the negative outlook reflects the city's progress in effectively reversing the city's fiscal decline through implementing financial policies and generating positive operating results in fiscal 2007.

For the full report CLICK HERE.