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Moody’s Investor Service has announced it is maintaining Tompkins County’s high municipal bond rating of “Aa1” and has removed the “negative outlook” qualifier that has been part of the County’s rating for the past three years.  Moody’s has revised the outlook from “negative” to “stable.” Tompkins County’s bond rating is among the highest in New York State.

The high rating prepares the County well for its upcoming issue of $18 million in bonds and $2.4 million in bond anticipation notes. The bond sale will take place November 30.

“County Administrator Joe Mareane and I vigorously pursued a reevaluation of the previous negative outlook, which we believe did not accurately reflect the financial strengths of our county,” says County Finance Director David Squires.

The Moody’s rating announcement states:

“The Aa1 rating reflects the county’s stable tax base with a sizable tax-exempt component anchored by two large higher education institutions, a historically stable and adequate financial position, and an average debt burden. The stable outlook reflects Moody’s expectation that the county’s financial position may narrow slightly in the near-term but will remain relatively stable due to management’s commitment to maintaining financial flexibility at currently adequate levels despite ongoing revenue weakness and growing expenditure pressures.”

Moody’s municipal bond ratings are based upon analysis of four primary factors related to municipal finance:  economy, debt, finances, and administration/management strategies.  An “Aa” rating, as defined by Moody’s, reflects “very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues.”

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