Moody's Assigns Aa2 to Croton-on-Hudson, NY's GO Bonds

New York, January 04, 2022 - Moody's Investors Service has assigned a Aa2 rating to the Village of Crotonon-Hudson, NY's $8.4 million Public Improvement Refunding (Serial) Bonds, 2022 and $743,580 Public Improvement (Serial) Bonds, 2022. Concurrently, Moody's has affirmed the village's Aa2 issuer and general obligation limited tax (GOLT) ratings. The issuer rating is equivalent to the village's hypothetical general obligation unlimited tax (GOULT) rating; there is no debt associated with the GOULT security.

 

The Aa2 issuer rating reflects the village's affluent and moderately-sized tax base that continues to benefit from its favorable location in Westchester County, NY (Aa1 stable). The rating also incorporates its strong financial position supported by conservative budgetary practices. The village's long-term liabilities and fixed costs are above the average but affordable

 

We consider the outstanding debt to be GOLT because of limitations under New York State (Aa2 positive) law on property tax levy increases. The lack of distinction between the Aa2 GOLT rating and the Aa2 GOULT equivalent issuer rating reflects the village board's ability to override the property tax cap and the village's faith and credit pledge in support of debt service.