Moody's Gives Suffolk Best Rating Ever

Friday afternoon, Suffolk County earned a historically high bond rating from Moody's Investor Services, receiving an "Aa2" rating with a "stable outlook."

The new rating is higher than the county's previous Aa3 rating from Moody's, because the company recently recalibrated its rating scale and methodology. However, Moody's noted Suffolk's "…efforts to mitigate a substantial 2009 budget gap… and proactive response to ongoing budgetary pressure" in granting the county a "stable outlook," according to a statement from the County.

"Maintaining our historically high bond rating, with a stable outlook, is wonderful news for the taxpayers of Suffolk County, who benefit in the form of lower interest rates on borrowing," Suffolk County Executive Steve Levy said in a statement. "I am proud to say that since I took office in 2004, Suffolk County has received six bond rating upgrades, and maintaining this new high level is reflective of our long record of sound budgeting policies of fiscal conservatism, restrained spending and prudent reserves."

"Given today's sluggish national economy, we are hopeful this rating will help attract numerous investors at very favorable interest rates for our bonds," County comptroller Joe Sawicki said in a statement.  "This is affirmation of the cooperative efforts between the County Executive, the County Legislature, the Treasurer and my office in navigating through some difficult financial waters."

Officials said the rating will come into play later this month when Suffolk goes to the bond market for the sale of more than $96 million in  serial bonds, as well as the sale of bond anticipation notes (BAN), the County said.

The Moody's report cited Suffolk's encouraging economic development outlook, including the relocation of Canon to Melville, plans for a $250 million SUNY Center of Excellence in Wireless and Information Technology and development plans on Pilgrim State, Yaphank, Calverton, Gabreski Airport and the Ronkonkoma transit hub.

"…(W)e expect continuation of management's proactive monitoring of revenue and expenditure performance and demonstrated willingness to make budget adjustments as needed," the report noted.