EASTCHESTER, N.Y. – Approximately $4 million in bonds that were issued by the Town of Eastchester were judged to be of high quality and subject to very low credit risk by one of the nation’s top financial rating services.
Moody’s Investors Service - which has been rating securities for more than a century – assigned an Aa1 rating on $3.9 million of serial GO bonds that were issued this year.
“The rating reflects a large, wealthy tax base with strong socio-economic characteristics in a prime suburban location in metropolitan New York City,” Moody’s said. “The rating also incorporates a strong fund balance and cash position, solid financial management and a modest debt burden.”
The affluent tax base, substantial reserves and manageable - $13.3 million – debt burden were each cited as reasons for the strong rating. Moody’s could only find two challenges that the town may face: exponentially rising pension and health care mandates and costs related to loans attributed to Lake Isle Country Club.
Moody’s said there are several factors that could alter the rating moving forward. It could be improved, to an Aaa distinction, if the tax base or reserve is significantly increased. It is subject to being demoted to an A if the town is forced to substantially draw from the current reserves or is unable to collect resources from Lake Isle.
See the complete Moody’s report here.
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