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Moody's Affirms Village of Croton-on-Hudson Credit Rating of Aa2

Credit analysis cites strong fiscal position and good governance practices in rating issuance.
Posted on: September 25, 2023 - 3:10pm

CROTON-ON-HUDSON, N.Y. – Moody’s Investor Services (MIS) recently assigned a Aa2 rating to the Village of Croton-on-Hudson. This rating affirmed the Village’s credit rating assigned in previous years.

The report follows a presentation to the rating agency by Village Manager Bryan Healy on September 5. The Aa2 rating will afford the Village favorable interest rates when it goes to the financial markets later this month to fund more than $2.7 million in 2023 capital projects approved by the Board of Trustees.

Regarding the Village’s financial position, the report stated, “The Aa2 issuer rating reflects the village's healthy financial position with strong reserves and liquidity levels and stable local economy. The village benefits from its strategic location in Westchester County, NY (Aa1 stable) which attracts commercial activity and new employment opportunities in the area.” Moody’s also cites the good governance practices and strong fiscal oversight undertaken by management, such as the adoption of a formal fund balance policy and debt policy, as support for maintaining its Aa2 credit rating.

“Three years ago, we faced unprecedented financial uncertainty due to the pandemic. Now, we have reduced debt by $3M and have built the largest fund balance in village history. Thank you to our Manager, Treasurer and my colleagues on the Village Board for sustaining this progress.” said Mayor Brian Pugh, “The residents have the ultimate judgment over the work of our village government but Moody’s Aa2 rating is a powerful endorsement of our fiscal strength.”

Bonds and Bond Anticipation Notes (BANs) to fund the Village of Croton-on-Hudson’s capital program went to market last week.  The Village obtained rates of 3.88% for our bonds and 4.21% for our BANs. These rates are in line with other municipalities rated Aa2 and met the approval of the Village’s financial advisor. Total outstanding debt for the Village will decrease for the current fiscal year as the new bonds and bands are more than totally offset by the full repayment of the Village’s previous obligations.

To read the Moody’s press release please visit: https://www.moodys.com/research/Moodys-assigns-Aa2-to-the-Village-of-Croton-on-Hudson--PR_908292888