Moody’s Twice Reaffirms Islip Town’s Aaa Financial Rating

Islip Town Supervisor Angie Carpenter is pleased to announce that today, Moody’s Analytics, Inc. has reaffirmed the Town’s financial Aaa status with a stable outlook for the second consecutive time. The Town’s rating was first upgraded in March 2016 to Aaa, and was reaffirmed Aaa in September 2016.

Today, the agency announced it had reaffirmed the Town’s Aaa bond rating for yet a second consecutive time.

The rating agency announced in its Aaa reassignment today, “Moody’s Investors Service has assigned a Aaa to Islip’s $24.7 million Various Purpose Serial Bonds 2017. Moody’s maintains a Aaa on the Town’s $160 million of outstanding debt. The rating reflects Islip’s strong credit profile, including a sound financial position, a large tax base poised for future growth, above-average wealth indicators, and manageable debt.” The investor service also noted in its reassignment, “Islip’s sound financial position will continue, given management’s commitment to maintaining financial flexibility. Islip generated operating surpluses in the General Fund for the past four fiscal years, including a $1.2 million surplus in fiscal 2016.”

“I am pleased that together with the cooperation of the Town Board, we were able to establish a strong budget process. We worked closely with our Commissioners to tighten budgets as necessary, making certain that each and every taxpayer dollar spent is done with the utmost scrutiny. We have instituted zero based budgeting to our spending plans, assuring that no projects move forward unless they are deemed essential. These are the strategies that enabled us to get the initial upgrade last year, and which was reaffirmed later that year in September 2016. With this in mind, we have been working on the 2018 budget,” said Supervisor Carpenter.

Supervisor Carpenter and staff met in March 2016, with representatives from Moody’s, closely analyzing the Town’s financial documents and conducting a tour of Islip’s notable resources. At that time, Moody’s upgraded the Town’s bond rating to Aaa, the highest rating that can be assigned to a municipality.

“Our willingness to look at the process realistically is something that has had a positive impact with the rating agencies. The goal always has to be, to maximize our revenues and decrease our expenditures,” said Joseph Ludwig, Town of Islip Comptroller.

Moody’s financial ratings are used by banks and others in the financial services industry to determine the financial health of a given organization.

 

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