Moody's Assigns Aa2 to the Village of Croton-on Hudson, NY's GOLT Bonds

New York, September 07, 2023 -- Moody's Investors Service has assigned a Aa2 rating to the Village of Croton-on-Hudson, NY's proposed $2.3 million Public Improvement (Serial) Bonds, 2023. Moody's maintains the village's Aa2 issuer and general obligation limited tax (GOLT) ratings. The village will have approximately $32.9 million in long-term debt outstanding including the new issuance.

 

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. While the village is largely built out and is not likely to substantially grow in the near future, this is offset by strong resident wealth and income.

 

The rating also incorporates the village's elevated but manageable leverage and fixed costs, largely driven by pension and OBEP liabilities.  

We consider the outstanding debt to be GOLT because of limitations under New York State (Aa1 stable) law on property tax levy increases. The lack of distinction between the Aa2 GOLT rating and the Aa2 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.