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11;1`1 ;1,"''I i .dry <br /> Massachusetts; General' <br /> Obligation <br /> US$8.245 mil GO muni purp In buds ser 2019 dtd 04/01/2019 due 04/01/2039 <br /> Long Term Rating AAA/Stable New <br /> Mashpee Town GO <br /> Long Term Rating AAA/Stable Affirmed <br /> Rationale <br /> S&P Global Ratings assigned its 'AAA'rating and stable outlook to Mashpee, Mass.' series 2019 general obligation <br /> (GO) municipal-purpose loan bonds and affirmed its 'AAA' rating,with a stable outlook, on the town's existing GO <br /> debt. <br /> We rate Mashpee higher than the sovereign because we believe the town can maintain better credit characteristics <br /> than the nation in a stress scenario due to its predominantly locally derived revenue base and our view that pledged <br /> revenue supporting debt service is at limited risk of negative sovereign intervention. In 2018, local property taxes <br /> generated 83%of general fund revenue, demonstrating a lack of dependence on central government revenue. (For <br /> further information, please see our criteria, titled "Ratings Above The Sovereign: Corporate And Government <br /> Ratings—Methodology And Assumptions,"published Nov. 19, 2013, on RatingsDirect.) <br /> Officials intend to use series 2019 bond proceeds, totaling approximately$8.2 million, to finance bond anticipation <br /> notes (BANs) outstanding permanently and fund various townwide projects. <br /> The town's full-faith-and-credit pledge, subject to Proposition 2 1/2 limitations, secures the GO debt. Despite <br /> commonwealth levy-limit laws,we did not make a rating distinction between Mashpee's limited-tax GO pledge and its <br /> general creditworthiness because our analysis of its financial and economic,conditions already includes the tax <br /> limitation imposed on its revenue-raising ability. <br /> The rating reflects our opinion of Mashpee's extremely strong property tax base that continues to grow as a Cape Cod <br /> community, aiding in continued positive budgetary performance that has supported the maintenance of healthy <br /> reserves. Due to active capital-project management through the annual budget process, the town has maintained a <br /> favorable debt profile, in our view,with no significant additional debt plans, coupled with manageable costs. Mashpee <br /> maintains additional flexibility from its new growth and unused levy capacity to absorb rising costs from low-funded, <br /> long-term liabilities. <br /> The rating reflects our opinion of Mashpee's: <br /> • Very strong economy,with access to a broad and diverse metropolitan statistical area(MSA); <br /> VU1NW.'ilANf.IA(if1AN�iF'OCIf''�i.00��1/R.A'TINGSC)IRk=CT MARCH 6, 2019 2 <br />