Rockland County, N.Y., received a one-notch rating boost late Wednesday from Moody's Investors Service.
The rating agency upgraded the suburban county to Baa1 as it prepares to issue a new bond refunding.
Moody’s analysts Valentina Gomez and Robert Weber said the upgrade reflects “significant improvement” in the county’s finances and strengthened liquidity on the heels of issuing deficit reduction bonds. The county has also benefited from improved budgeting practices, strong state oversight and a “sizeable tax base” with above average wealth, analysts said.
Rockland is planning a $28.9 million bond refunding on Oct. 23. Proceeds will refund bonds Rockland issued in 2006 and 2007.
Moody’s also assigned a positive outlook to the county’s general obligation debt citing enhanced fiscal practices and anticipated savings from closing a county-run mental health facility. Rockland transferred the facility to Nyack Hospital last year and plans to close it by the end of 2015.
“The positive outlook reflects our expectation that the county will continue to maintain strong budgeting practices, resulting in improved financial operations in 2015 and 2016,” said Gomez and Weber.
Moody’s upgraded Rockland’s GO bonds to Baa2 from Baa3 tin July 2014 after the county’s budgets were subject to mandatory reviews by New York State Comptroller Thomas DiNapoli. The county was faced with a $138 million deficit in late 2013.
“We are pleased that our measures of fiscal restraint, improved management and prospective budgetary planning have paid off," said Rockland County Executive Ed Day in a statement. "As we look to the future, we will continue to seek positive changes within the county's financial structure, such as the ongoing streamlining of services where possible. We're working hard each day to maintain this positive rating and keep our county moving forward."
Rockland is rated BBB by Standard & Poor’s, who gave the county its first upgrade since 2002 in May from a previous BBB-minus level. DiNapoli listed Rockland among 44 local governments facing fiscal stress in September.
