OREANDA-NEWS. February 26, 2016. Fitch Ratings has assigned an 'AA+' rating to \\$250 million in Commonwealth of Massachusetts general obligation (GO) bonds, consisting of:

--\\$125,000,000 GO refunding bonds (SIFMA index bonds), 2015 series B;
--\\$125,000,000 GO refunding bonds (SIFMA index bonds), 2015 series C.

The bonds were privately placed on Dec. 23, 2015.

The Rating Outlook is Stable.

SECURITY

The bonds are general obligations of the Commonwealth, to which its full faith and credit are pledged.

KEY RATING DRIVERS

STRONG AND WEALTHY ECONOMY: Massachusetts has a broad and diverse economy with the second-highest per capita personal income in the nation. Employment growth is solid, education levels are high, and population growth has approximated that of the U.S. this decade, a marked improvement from historical experience and the performance of other states in the region.

PRUDENT FINANCIAL MANAGEMENT: The Commonwealth has benefited from conservative budgeting and sound financial practices over time. A limitation on the use of capital gains-related tax revenue has reduced the volatility of economically sensitive revenues in the budget, and the Commonwealth has shown a commitment to reserve funding.

COMPARATIVELY HIGH DIRECT LIABILITY BURDEN: Massachusetts' liability levels are high for a U.S. state government, and Fitch expects them to remain so. This is partially explained by the above-average role played by the Commonwealth in relation to local levels of government when compared to most other states. In addition, the Commonwealth is responsible for the pension benefits of Commonwealth employees and teachers statewide, contributing to a combined burden of debt and pensions well above the median for U.S. states.

RATING SENSITIVITIES

The rating is sensitive to shifts in fundamental credit characteristics including the Commonwealth of Massachusetts' commitment to strong financial management practices.

CREDIT PROFILE

Massachusetts' 'AA+' GO rating reflects its considerable economic resources and a record of prudent financial management. Credit strengths are tempered by a comparatively heavy direct liability burden that Fitch expects to remain high. The Stable Outlook reflects the expectation that the Commonwealth will continue to act as needed to ensure budget balance and maintain an adequate budgeted reserve position.

For additional information on the Commonwealth of Massachusetts' GO rating, please see 'Fitch Rates \\$1.1 Billion Massachusetts GO Bonds 'AA+'; Outlook Stable,' dated Feb. 23, 2016, available at www.fitchratings.com.