Standard & Poor's Ratings Services raised its long-term rating on the town of Wallkill, N.Y.'s general obligation debt one notch to AA from AA-minus.
The outlook is stable.
"We base the upgrade on the town's very strong budgetary performance and continued improvement in its available reserve position," said Standard & Poor's credit analyst Timothy Daley.
At the same time, Standard & Poor's assigned its AA long-term rating and stable outlook to the town's series 2015 public improvement bonds.
The rating reflects the town's: strong economy, with access to a broad and diverse metropolitan statistical area (MSA); adequate management, with "standard" financial policies and practices under S&P's Financial Management Assessment methodology; very strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level; very strong budgetary flexibility, with an available fund balance in fiscal 2013 of 19% of operating expenditures; very strong liquidity, with total government available cash of 74.7% of total governmental fund expenditures and 11.5x governmental debt service, and access to external liquidity considered strong; weak debt and contingent liability position, with debt service carrying charges of 6.5% of expenditures and net direct debt that is 71.4% of total governmental fund revenue, as well as a large pension and other postemployment benefit liability; and strong institutional framework score.
