Thursday, 18 June 2009 09:33
Affirming Supervisor Jon Kaiman’s assertion in his January State of the Town Address that North Hempstead’s “fiscal situation is solid, storm ready, and stable,” the financial industry’s top municipal credit rating agency has retained the town’s historically-high bond rating.
The Aa2 rating—designated to the town for the fourth consecutive year—is the third highest possible rating.
The rating, first received by the Town in May 2005, marks the highest in North Hempstead’s history. Not only is it an endorsement of the Town’s solid economic foundation but more importantly it also translates into lower interest rate costs.
“Considering the challenging fiscal conditions facing municipalities, including our own, the bond rating is a strong affirmation of North Hempstead’s fiscal and operational management,” Supervisor Jon Kaiman said.
Moody’s Investors Service performs financial analysis and ranks the credit-worthiness of commercial and government entities.
Assignment of the Aa2 rating with “positive outlook reflects expected maintenance of solid financial position despite ongoing sales and mortgage tax receipt declines that are typical of many New York municipalities,” Moody’s said in a prepared statement. “The rating also factors the town’s enhanced long-term financial planning and internal controls…and a declining debt burden driven by proactive debt management strategies,” Moody’s said.