S&P Global Ratings said it has raised its long-term rating on Rockland County, N.Y.'s general obligation debt to BBB-plus from BBB.
At the same time, it assigned a BBB-plus long-term rating to the county's series 2016 various purposes GO bonds. The outlook is positive.
"The higher rating reflects increased reserves following a 2014 deficit financing bond issuance and improved budgetary performance in subsequent fiscal years which we expect will continue," said S&P Global Ratings credit analyst Timothy Little.
The county's faith-and-credit pledge secures the bonds. Officials intend to use bond proceeds to fund various capital improvements. A portion of the proceeds from the sale of the bonds in the amount of $1.579 million, together with $17,000 in available funds, will be used to redeem the county's $1.6 million bond anticipation notes (BANs), 2016 series A at maturity.
"While the county's budgetary flexibility has improved to a level less than negative 5% of expenditures at the end of the fiscal 2015, it remains very weak, with continued improvement expected for fiscal 2016," said Little.