New Rochelle Snags Top Short-Term Bond Rating Despite Rocky 2024 Finances

NEW ROCHELLE, NY (November 30, 2025) — Moody’s Ratings has assigned a MIG 1 rating — its highest short-term grade — to the City of New Rochelle’s approximately $40.99 million Bond Anticipation Notes, 2025, while affirming the city’s Aa2 issuer rating and general obligation limited tax rating.

After the sale, New Rochelle will have roughly $209 million in long-term general obligation limited tax debt outstanding.

Moody’s said the MIG 1 rating reflects the city’s strong underlying credit quality, healthy liquidity, and demonstrated history of market access. The city has held the Aa2 issuer rating since 2017.

The Aa2 rating is supported by New Rochelle’s solid and rapidly expanding local economy. Over the past five years, the city’s full value has grown from $9.2 billion to $11.3 billion, pushing full value per capita to $140,002. Moody’s attributed the growth largely to significant downtown development activity.

Despite a long track record of stable operations, the city saw an unusual reserve decline in 2024 due to several one-time factors. Officials expect reserves to begin rebuilding by the end of fiscal 2025 and continue strengthening into 2026.

“Moody’s assessment reflects the underlying strength of New Rochelle’s economy and our commitment and plan to restore our financial position following an unusually challenging year,” said Wilfredo Melendez, city manager of New Rochelle. “Our proposed 2026 budget demonstrates this commitment by focusing on rebuilding reserves and avoiding the use of unassigned fund balance. With major development projects continuing to advance and our fiscal strategies taking hold, we remain confident in the City’s long-term financial stability and our ability to deliver high-quality services to the community.”

This article was drafted with the aid of Grok, an AI tool by xAI, under the direction and editing of Robert Cox to ensure accuracy and adherence to journalistic standards.