BATH — Warship contracts that were recently awarded to Bath Iron Works will bring years of revenue stability to the city of Bath, which relies heavily on BIW tax revenue, according to a newsletter from Moody’s, a financial research firm.
“These contracts are credit positive for the city of Bath … and other nearby municipalities in midcoast Maine given BIW’s significant contribution to the regional economy,” said Moody’s Weekly Credit Outlook newsletter, released today.
In late September, the Navy awarded BIW a $680 million contract to build a new Arleigh Burke-class destroyer. The company, which employs 5,400 workers, also has contracts to build three new Zumwalt-class destroyers.
The report said BIW is the city’s largest taxpayer, accounting for 40 percent of the city’s assessed value.
The prediction comes despite looming Pentagon budget cuts. But Moody’s believes the Navy is unlikely to cancel destroyer contracts given the government’s longstanding relationship with BIW and the Navy’s publicly stated intent to continue ordering Arleigh Burkes for years to come.
“BIW’s new contracts run through 2018, providing several more years of employment stability and economic benefits for the Bath region,” said the newsletter.
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