South Brunswick Gets Negative Outlook

Standard & Poor's revised its outlook to negative from stable on South Brunswick Township, N.J.'s general obligation bonds and affirmed its AA rating.

"We revised the outlook based on our assessment of the township's significant decline in reserves and ongoing budgetary pressures stemming from ongoing tax appeals, the weakened economy, and rising expenditure costs," analysts said in a report.

The rating reflects the township's very strong income and wealth levels, low unemployment, and participation in the deep and diverse economy of Middlesex County, rated AAA. It also reflects a weakened financial and reserve position and low to moderate debt burden.

The outlook revision comes ahead of the township's $9.5 million GO bond sale to finance various capital projects relating to township needs and open space, water, and sewer projects.

The bonds will be sold competitively on Thursday.

Standard & Poor's also revised the outlook to negative from stable on Stony Brook Regional Sewer Authority's GO bonds and affirmed its AA rating. The authority is located in Princeton, N.J.

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New Jersey
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