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Rating Action: Moody's assigns Aaa to Wellesley, MA's GOLT bonds; outlook stableGlobal Credit Research - 27 Jan 2022New York, January 27, 2022 -- Moody's Investors Service has assigned a Aaa rating to the Town of Wellesley, MA's $88.3 million General Obligation Municipal Purpose Loan of 2022 Bonds. Moody's maintains the Aaa ratings on the town's outstanding general obligation unlimited tax (GOULT) and general obligation limited tax (GOLT) bonds. The outlook is stable. Post-issuance the town will have $209 million in outstanding debt.The outstanding GOULT bonds are considered unlimited tax because the entire amount of the debt service has been voted by the town as excluded from restrictions under Massachusetts law on the town's ability to increase the property tax levy to pay debt service, referred to as Proposition 2 1/2. Moody's considers the pledge supporting the current issue and outstanding GOLT bonds to be general obligation limited tax because not all of the debt service has been voted by the town to be excluded from the tax levy limit under Proposition 2 1/2.RATINGS RATIONALEThe Aaa rating reflects the very affluent tax base with institutional presence, strong fiscal management with stable operations although reserves as a percent of revenue are below the national median for the highest rating category. The rating also incorporates a recent increase to the debt burden that is expected to remain manageable and strong funding commitment towards unfunded pension and OPEB liabilities.The absence of distinction between the GOLT rating and the GOULT rating reflects the town's ability to override the property tax cap and its pledge of its full faith and credit.RATING OUTLOOKThe stable outlook reflects the town's conservative budgeting and adherence to formalized financial policies that will support balanced operations in the future. The outlook also incorporates the additional financial flexibility provided by the strong tax base with voter approved debt exclusions to the tax levy limits of Proposition 2 1/2.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Not applicableFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Decline in available reserves- Material increase in the debt burden or unfunded pension and OPEB liabilities- Large and sustained deterioration in the tax base valuationLEGAL SECURITYThe bonds are backed by the town's full faith and credit general obligation limited tax pledge given that the entire amount of debt service has not been voted by the town as excluded to the tax levy limit under Proposition 2 1/2.USE OF PROCEEDSBond proceeds will redeem approximately $1.8 million in outstanding bond anticipation notes and provide new money to fund various capital projects of the town including the Hunnewell school construction, John D. Hardy elementary school project, other school projects and town repairs and improvements.PROFILEWellesley is located 15 miles west of Boston (Aaa stable) with a population of approximately 29,000. It is primarily residential in composition and is home to Wellesley College (Aa1 stable) and Babson College (A1 stable).METHODOLOGYThe principal methodology used in this rating was US Local Government General Obligation Debt published in January 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1260094. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Nicholas Lehman Lead Analyst REGIONAL_NE Moody's Investors Service, Inc. 101 Arch Street Boston 02110 JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Gera McGuire Additional Contact REGIONAL_SOUTHWEST JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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