Long Beach, N.Y.’s declaration of fiscal crisis, giving its new city manager broader powers, is a credit positive, said Moody’s Investors Service.
Moody’s rates the city’s general obligation bonds Baa3, and has them under review for a downgrade.
City manager Jack Schnirman now has greater control over financial operations, including the authority to implement budgetary initiatives.
“Importantly, it does not allow the city to forgo the payment of contractual agreements, including the payment of debt service,” Moody’s said.
