Fitch AA+; Moody’s Assigns Aa1, Fiscal Outlook is Stable
Fitch Ratings has assigned ‘AA+’ ratings to bonds issued by Westchester County, and has upgraded the County’s Rating Outlook to Positive from Stable.
Westchester County Executive George Latimer said: “As stated by Fitch, the County’s outlook has been upgraded to ‘Positive’ from ‘Stable’ because of our improved financial operations. This is all done by good strategic planning and budgeting, we have increased the County’s unrestricted general fund balance, bolstering the County’s overall financial resilience. We balanced the 2023 budget without ‘one-shots’ and budgetary gimmicks. This is a promise I made on the campaign trail, I will always do right by the people of this County. We have been able to increase our credit rating and cut taxes – again.”
Moody’s Investors Service has assigned an Aa1 rating to the County of Westchester’s (NY) General Obligation Bonds – 2022 Series. Moody’s also afirmed the county’s Aa1 issuer rating. The outlook is stable.
The stable outlook refects the likelihood that the county will continue to produce balanced
operations in 2022 and 2023 resulting in moderate increases to cash and reserves. The outlook
also anticipates that the county’s economy and debt profle will remain consistent with the rating
despite potential headwinds in the form of rising interest rates and elevated infation, which
could slow the housing market and increase the costs associated with the county’s sizeable
capital program.
The Aa1 rating assignment refects the county’s diverse and resilient economy, which is highlighted by strong resident wealth, a sizeable corporate base, and healthy full value per capita. The county’s economy also continues to beneft from its proximity to New York City, which prepandemic, allowed it to serve as a desired hub for workers commuting into the city. Since the pandemic, the county has beneftted from county commuters who now allocate more time working and spending within the county. In addition, the post-pandemic changes to work patterns have further boosted the competition for housing in what was already a very competitive residential market.
Though this strength will be somewhat dampened by heightened interest rates, the county’s comparative value relative to Manhattan will likely allow it to maintain a resilient housing market.
This expectation has been realized as a result of a combination of conservative revenue budgeting, disciplined expenditure controls and the receipt of federal monies. Consequently, the county’s fund and cash balance ratios, while still well below the median for the sector, nonetheless refect continued improvement and will likely remain stable in fscal 2023.
