Moody's Investors Service said it has upgraded the town of Harrison, N.J.'s rating to Ba1 from Ba2 on $35.8 million of long-term general obligation bonds outstanding.
The outlook is positive.
The upgrade to Ba1 reflects the town's improved financial flexibility, evidenced by positive fiscal 2012 unaudited financial results, augmented reserves and excess levy capacity above the property tax levy cap. This flexibility is particularly important as the town continues to face legal challenges, albeit to a lesser degree, from its largest tax payer, Red Bull Park, Inc.
The positive outlook will consider the town's continued maintenance of financial flexibility as litigation with Red Bull Park remains ongoing. It will also factor in the adoption and execution of structurally sound budgets moving forward.