Moody’s Investors Service assigned an A2 rating to Passaic County, N.J.’s $19.7 million of general improvement bonds and $2.1 million of county college bonds, as well as an A2 underlying rating and Aa2 enhanced rating to $945,000 of county vocational school bonds.
Moody’s upgraded the county’s general obligation bond rating to A2 from A3, affecting $452.6 million of debt previously issued or guaranteed by the county.
The bonds are secured by the county’s unlimited property tax pledge.
Moody’s has also assigned MIG-1 ratings to $23.2 million of bond anticipation notes, Series 2010A, and $13.6 million of Bans, Series 2010B.
The upgrade is based upon significant steps taken by management over the past two years to restore structurally balanced operations.
The positive moves include successful implementation of a workforce reduction plan to offset revenue lost with the cancellation of the county’s planned sale of its golf course in December 2007.
The upgrades also reflect the county’s entry into a shared services agreement that is expected to result in substantial savings related to its juvenile detention facilities.