Rating Action Moody's Ratings assigns initial Aa2 issuer and GO ratings to Ogunquit, ME

Moody's Ratings has assigned an initial Aa2 issuer rating to the Town of Ogunquit, Maine, reflecting its affluent year-round residents and stable financial situation. Additionally, the town's $12. 8 million General Obligation Bonds received the same Aa2 rating, indicating strong financial health. Ogunquit's population swells from 1,500 to over 20,000 during the summer months, driven by its status as a popular tourist destination. However, environmental risks, including recent weather-related damages, pose challenges to the town's infrastructure and economy.

Governance is also a key factor, as effective management is critical for long-term budgetary planning and stability. The bond proceeds are earmarked for various projects, notably the refurbishment of an existing building into a town hall and police facility. Despite the positive ratings, Moody's has not assigned an outlook at this time due to the town's debt levels. Factors that could lead to upgrades or downgrades of the ratings include changes in fund balances or long-term liabilities.