The Town of Chatham’s AAA bond rating was reaffirmed by Standard & Poor’s on May 27, following a ratings review call with Town Manager Jill R. Goldsmith, Director of Finance Carrie Mazerolle, Treasurer/Collector Sharon Drown, S&P analysts, and the town’s financial advisors to discuss the issuance of General Obligation Bonds totaling $9.405 million for 2026.
AAA is the highest bond rating available for municipalities. The ratings report states, “Chatham’s general creditworthiness is supported by its affluent local economy that centers on summer tourism, with a large second-home presence, and its consistent operating surpluses reflecting steady local revenue growth and cautious budgeting assumptions.”
The report also notes that while Chatham faces environmental risk from coastal flooding and severe weather events due to its location along the Atlantic Ocean, “The town has proactively managed the risk by pursuing coastal resiliency grants from the commonwealth to bolster its infrastructure, prioritizing its most vulnerable roads, implementing its 2018 hazard mitigation plan that is currently being updated, and hiring a coastal resources director to oversee these various resiliency efforts…The town has also taken steps to mitigate cyber risk.”
Additionally, the report states that “Chatham’s GO bonds are eligible to be rated above the sovereign because we believe the town can maintain better credit characteristics than the nation in a stress scenario.” The stable outlook reflects S&P analysts’ “expectation that Chatham will maintain generally balanced operations and a healthy fund balance position that will remain comparable with those of ‘AAA’ rated peers despite a planned drawdown in fiscal 2026.”
Town Manager Jill R. Goldsmith said, “I’m proud to lead a team that, for over a decade, has maintained the highest bond rating available for municipalities through thoughtful planning, sound financial practices, and responsible fiscal management, but as the rating is influenced by the local economy, property values, and tax base, this is really a community achievement.” Goldsmith thanked Director Mazerolle and Treasurer/Collector Drown as well as Assistant Town Manager/Director of Community Development Kathleen Donovan; Director of Natural Resources Greg Berman; and IT Manager Ryan Darmon for their assistance in preparing for the ratings review.
The AAA/stable rating applies both to this new issuance as well as outstanding general obligation bonds.
