Rockland Co., N.Y., GOs Upgraded to BBB-Plus by S&P

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.

For reprint and licensing requests for this article, click here.
New York
MORE FROM BOND BUYER