Ogunquit, Maine Receives 'AA' Rating for General Obligation Bonds

Ogunquit, Maine, has secured an 'AA+' rating from S&P Global Ratings for its upcoming $12. 75 million general obligation bonds, reflecting a strong credit profile backed by prudent financial management. This rating indicates the town’s ability to meet its debt obligations, supported by its full-faith-and-credit pledge that allows for property tax levies. The repeal of the state's LD-1 debt limitations, effective this summer, will not negatively impact Ogunquit's creditworthiness. Proceeds from the bond issuance are earmarked for essential capital projects, particularly a new municipal campus that will accommodate the police department and town administration.

Ogunquit's economy, bolstered by second homes and summer tourism, has fostered a record of stable finances and growing reserves. The town's moderate debt burden and limited retirement liabilities further enhance its favorable credit outlook. Additionally, Ogunquit has actively engaged in environmental planning, addressing risks associated with its coastal location. The stable outlook reflects confidence in the town's financial performance and economic resilience despite potential challenges from lower personal income levels compared to higher-rated peers.