NEW ROCHELLE, N.Y. -- Moody's Investors Services has removed the "negative outlook" designation the city of New Rochelle received in 2011.
The company confirmed the existing rating of Aa3 to the City of New Rochelle’s upcoming bond issue, representatives said. The removal of the "negative outlook" designation enhances the credit worthiness of the City’s debt and means that the city will "enjoy lower interest costs on general obligation bonds that may be issued in the future," representatives said.
“This is very good news for the taxpayers of New Rochelle and provides evidence that our financial management practices are recognized in a positive fashion by the investment community," said Mayor Noam Bramson said.
The removal of the negative outlook recognizes the city’s improved financial position “due largely to the implementation of improved budgetary practices.”
Moody’s recognized as critical factors the steady improvement in the city’s fund balance over the past three years and the positive variances in sales taxes, building permits, delinquent taxes and mortgage taxes.
“The removal of the negative outlook is a major achievement and indicates that we have successfully met the fiscal challenges caused by the global economic recession beginning in late 2007,” said city Finance Commissioner Howard Rattner. “Continuation of our present budgetary practices will insure the future financial stability of the city.”