Moody's Investors Service said it has assigned a MIG 1 rating to the village of Haverstraw, N.Y.'s $6.5 million bond anticipation notes, 2014 (federally taxable) and upgraded to Aa3 the rating on $13.3 million in previously issued general obligation debt.
The outstanding long-term debt and notes are secured by a general obligation pledge as limited by the Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011). Note proceeds will be used to finance a judgment against the village which village officials expect to be fully reimbursed by the local developer.
The upgrade to Aa3 reflects the village's continued healthy financial position despite the various operating challenges over the past three years and management's commitment to maintain sound reserves going forward.
The rating also reflects the village's higher than average debt levels and small, residential tax base with below average income levels.
The MIG 1 rating reflects a strong underlying rating credit characteristics, frequent market participation and a well developed note market in New York.
