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County Also Maintains Historically High Ratings With Moody’s and Fitch, While Registering ‘Stable’ and Improved ‘Positive’ Outlooks
Ratings Agencies Recognize County Executive Levy’s Control of Spending, Pro-active Innovation and Willingness to Take Difficult Stands
Hauppauge, NY –Suffolk pro-active approach in addressing a potential 2009 budget shortfall, along with the county’s continued conservative fiscal management and cost containment initiatives, has earned the county a significant benefit—its highest bond rating ever from Standard & Poor’s. “The upgrade on the outstanding bonds reflects continued strong management of the county's financial position,” said Standard & Poor's credit analyst Eden Perry.
Suffolk County Executive Steve Levy and County Comptroller Joe Sawicki also announced that Fitch Ratings has improved its record-high assessment of Suffolk by moving the county’s future outlook from ‘stable’ to ‘positive’. The third major rating agency, Moody’s Investor Services, affirmed its Aa3 Stable rating for Suffolk.
Based on the county’s research, Suffolk is the only county in New York State to receive a credit rating increase since the start of the calendar year and the start of the economic turmoil in these municipal markets.
“In today’s fiscal climate, this is outstanding news for our taxpayers,” said Levy. “Maintaining our high rating during this difficult economic time is quite an accomplishment—and we are proud that we have not only done that, we have also earned an upgrade from one agency and had our future outlook improved by a second agency.”
Municipal bond insurers consider a jurisdiction’s bond rating when assessing bond insurance premiums; municipalities with high ratings pay lower interest rates, which benefits taxpayers.
“We have been improving and maintaining our high bond rating for the past four years, and it is always reassuring when the financial markets recognize our sound, conservative fiscal policies,” said Levy. “This year, we feel a particular sense of satisfaction because we have been rewarded for taking strong, decisive steps to offset a looming 2009 budget shortfall.”
County Executive Levy praised the Suffolk Legislature and the county’s elected fiscal representatives for working with him in a mostly bi-partisan fashion during difficult fiscal times.
County Comptroller Sawicki added, “Today’s upgrade from Standard & Poor’s and the assignment of a positive outlook from Fitch acknowledges the county’s success in weathering these difficult economic times. I am convinced that, given our pro-active approach to addressing budgetary and cash flow issues, the marketplace will continue to hold Suffolk in high regard. Improved credit ratings will result in savings for our taxpayers, and that’s good government.”
Highlights from news releases issued by the ratings agencies are listed below.
Standard & Poor’s
Rating: AA with a stable outlook
Standard and Poor’s upgraded Suffolk from an AA- with a stable outlook to AA with a stable outlook – a new high-water mark for the county.
“The upgrade on the outstanding bonds reflects continued strong management of the county's financial position,” said Standard & Poor's credit analyst Eden Perry, in a news release issued by the ratings agency on May 7. S&P noted that the ‘AA’ rating reflects the county's “. . . proactive budget management; healthy reserve levels; and favorable overall debt profile.” Furthermore, the agency noted that the ‘stable’ outlook reflects “. . .Suffolk County's sound financial performance, proactive budget management, healthy reserves, and strong local economy. The county's substantial tax base and aggressive debt retirement are additional strengths.”
Fitch Rating: AA- with a positive outlook Fitch affirmed its AA- rating, while upgrading its outlook from stable to positive, based on Suffolk County’s “…success in containing expenditure growth and accumulating reserves and its move to address long-term budget stability. The agency noted that “The continued ability to contain expenditure growth and maintain financial strength could lead to an upgrade of the rating.” Among the county’s cost containment measures cited by Fitch was “…constraining costs through expanding the use of generic drugs and negotiating with its unions.” Moody’s Rating: Aa3 Moody’s, which had yet to issue a release detailing its ratings decision as of the close of business today, informed Suffolk officials earlier in the day that it would maintain Suffolk’s historic Aa3 rating, with a ‘stable’ outlook. |