The Boston suburb of Chelsea, battered by past deficits and state receivership, took a tentative step yesterday toward putting its name back in the market for the first time since the 1970s.

A $ 100 million issue sold yesterday by the Chelsea Industrial Development Finance Agency is technically an obligation of the Commonwealth of Massachusetts. And Capital Guaranty Insurance Co. is insuring the deal, adding another buffer between the city and investors. Capital Guaranty's decision was based on the state's general obligation and lease-backed credit ratings. But city officials, who are hoping to market about $100 million of Chelsea bonds this winter for school renovations and a new courthouse, see yesterday's deal as a way of reacquainting the market with a local credit that once was one of Massachusetts' strongest.

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