Two rating agencies are keeping their eyes on Southampton, N.Y.
Moody's Investors Service said Friday it has placed on watch list for possible downgrade the town's Aa1 long-term general obligation unlimited rating affecting approximately $136 million of outstanding debt, and Standard & Poor's said it placed its AAA long-term rating on the town's GOs on CreditWatch with negative implications.
The Moody's action reflects the potential $10 million restatement downward of the town's general fund balance due to the inaccurate accounting of the funding of capital projects during fiscal years 2004, 2005, and 2006.
Standard & Poor's believes there might be material discrepancies, currently being investigated by the New York State Comptroller's office, in the town's internal controls and past financial audits, which could lead to a much weaker overall financial position than had been represented to the rating agency by the town in the past.
