Moody’s Investors Services has confirmed the existing rating of Aa3 to the City’s upcoming bond refinancing and has assigned a positive outlook to the City’s general obligation debt. The positive outlook designation enhances the credit worthiness of the City’s debt and means that the City will enjoy lower interest costs on general obligation bonds that may be issued in the future.
Mayor Noam Bramson said, “This is good news for the taxpayers of New Rochelle and evidence of the City’s sound financial management. We will continue working to strengthen our local economy and tax base, even as we seek efficiency in local government.”
In confirming the Aa3 rating, Moody’s noted the city’s sizable tax base, above average wealth indices, low debt burden and adequate reserve position. The positive outlook recognizes the city’s “recent transition from deficits to surpluses and the expectation that this trend will continue.”
Moody’s concluded that the city’s financial position should continue to improve in the medium term given three straight years of surpluses and continued conservative budgeting practices that has resulted in an increase in available operating fund balances from $2.1 million in 2011 to almost $8.5 million at the end of 2014.
“The designation of positive outlook is a major accomplishment and represents the highest rating achieved by the City in at least the past eighty years,” said Finance Commissioner Howard Rattner. “Continuation of our present budgetary practices will insure the future financial stability of the city.”
Moody’s Investors Services is one of the world’s leading providers of independent credit ratings, research, risk analysis and financial information to the investment community. Together with the Aaa group, bonds rated as Aa comprise what is commonly known as high grade bonds with minimal long term risk concerns.
