Moody’s Investors Service withdrew its credit rating for the Town of Ramapo, N.Y. after it failed to provide audited financial statements for the 2015 fiscal year.
Ramapo was among eight northeast municipalities placed on review by Moody’s in January for lack of financials.
The town in Rockland County was downgraded two notches by Moody’s to A3 in May following federal fraud charges levied against town officials for alleged misstatements of financial reporting to finance a $60 million minor league baseball stadium that is now home to the Rockland Boulders.
Moody’s analyst Susanne Siebel said in a report Wednesday that the rating removal impacts $138 million of outstanding debt.
Moody’s May downgrade cited “increased” risk from the federal charges resulting in management disruptions and delays in financial reporting. The April 2016 indictment spearheaded by U.S. attorney Preet Brahara included 22 counts of wire fraud, securities fraud and conspiracy to commit securities fraud against Town Supervisor Christopher St. Lawrence as well as Aaron Troodler, former executive director of the Ramapo Local Development Corp., which issued bonds for the stadium. Town Attorney Michael Klein and Deputy Finance Director Nathan Oberman were also charged.
The Town of Ramapo press office did not immediately respond to a request for comment on the credit rating withdrawal.
