Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
New Issue:

MOODY'S ASSIGNS Aa2 RATING TO THE VILLAGE OF ROCKVILLE CENTRE'S (NY) $7.1 MILLION PUBLIC IMPROVEMENT SERIAL BONDS, 2011

01 Feb 2011

RATING APPLIES TO $45 MILLION IN RATED G.O. DEBT, INCLUDING THE CURRENT ISSUE

Municipality
NY

Moody's Rating

ISSUE

RATING

Public Improvement (Serial) Bonds, 2011

Aa2

  Sale Amount

$7,115,000

  Expected Sale Date

02/02/11

  Rating Description

General Obligation

 

Opinion

NEW YORK, Feb 1, 2011 -- Moody's Investors Service has assigned a Aa2 rating to the Village of Rockville Centre's (NY) $7.1 million Public Improvement (Serial) Bonds, 2011. The bonds are general obligations of the village secured by an unlimited tax pledge and will finance various public improvements.

SUMMARY RATINGS RATIONALE

Concurrently, Moody's has also affirmed the Aa2 rating on the village's $38 million in rated general obligation debt. The Aa2 rating reflects a large, affluent Nassau County (G.O. rated A1/negative outlook) base with declining taxable values; an adequate financial position, marked by below average, but liquid available reserves in the General Fund; and a favorable debt position.

Strengths:

-Large, wealthy Long Island tax base with ample job opportunities.

-Low debt burden.

Challenges:

-Maintenance of narrow General Fund position.

-Rate increase necessary to maintain liquidity in Electric Fund.

WEALTHY NASSAU COUNTY TAX BASE MARKED BY ONGOING TAX APPEALS

Moody's believes the village's substantial $5 billion tax base will continue to benefit from it's proximity to regional employment centers. Located in Nassau County, village residents enjoy easy access to employment centers throughout the New York City (G.O. rated Aa2, stable outlook) metropolitan area. Assessed value has dropped steadily in recent years (-1.1% on average, annually), as ongoing tax certiorari claims, particularly on commercial properties and apartment complexes, have been the primary drivers. Full value growth has slowed to a moderate 4.5% five-year average annual rate from a peak 12.4% in fiscal 2008, reflecting a weakening of market value appreciation and including a 1.8% decline in values in fiscal 2011. Wealth levels within the village are strong, reflected by per capita income of $40,739 (174.2% of state) and median family income of $103,315 (199.9% of State). Full value per capita is also well above the state median at $205,630.

NARROW RESERVE LEVELS EXPECTED TO REMAIN STABLE

Moody's expects the village's financial position will remain satisfactory, reflecting a demonstrated willingness to augment revenues to support budget growth. Ongoing tax certiorari claims, over-expenditure for culture and recreation, lower than expected mortgage tax revenues and rising retirement costs, have historically challenged the village to achieve structural balance. Most recently, the village ended fiscal 2010 with a General Fund surplus which increased reserves by $360,000 to a narrow but still adequate $2.1 million (5.8% of revenues) from $1.8 million (5.1% of revenues) the prior year. The Undesignated General Fund reserve improved to $1.4 million from $1.1 million the prior year, in line with informal reserve targets. The operating surplus was generated from $1.5 million in one-time unbudgeted building permit fees from the construction of a 349-unit rental complex and the expansion of Molloy College. Management has maintained undesignated reserve levels between 3.3% and 5.4% of revenues for the last seven consecutive years, indicating some degree of financial stability; Moody's believes that the fund balance remains narrow, however, somewhat limiting the village's ability to respond to unexpected budgetary pressures. The Aa2 rating heavily factors stabilization of the village's overall financial position, satisfactory liquidity and the continued structural balance in the near term. Future operating deficits or fund balance decline either in dollar amount or in percentage of revenues could result in negative credit pressure.

The board-approved fiscal 2011 budget grew by $1.7 million, or 4.9%, over the 2011 budget, reflecting increases in the cost of benefits typical for New York municipalities. The village balanced the budget growth with a 6% increase in the property tax levy, generating an additional $1.3 million in revenue. Favorably, the village did not use reserves to balance the budget for the second consecutive year. Officials annually increase property tax rates sufficient to support operations and to offset a declining taxable base. Currently, management expects to finish fiscal 2011 with an approximate $300,000 increase in total fund balance to $2.5 million and a $400,000 increase in the undesignated fund balance to $1.8 million. Operating revenues are derived primarily from property taxes (60.5%), and are supported by a strong collection rate of close to 100% on a current basis. Additionally, the village's municipal electric and water utilities provide some diversity to the General Fund revenue base with utility PILOTS and charge-backs accounting for 13% of revenues in fiscal 2010.

The Electric Utility Fund, historically a self-supporting fund, finished fiscal 2010 with a $1.6 million operating deficit. The operating deficit was the primary driver in lowering cash by $2.3 million to $4.6 million. The operating deficit was due to the lower than expected sales revenues from a cooler than normal summer, as well as expenditure increases. Management has indicated that fiscal 2011 will end with another use of cash of approximately $1 million. Additionally, management has indicated that they have not begun the process of implementing a rate increase, which would take approximately eleven months. Moody's will continue to monitor the use of cash as it could put pressure on the village's General Fund, and thus put additional pressure on the village's credit rating.

FAVORABLE DEBT POSITION

Moody's believes the village's debt position will remain favorable, given its low direct debt burden and rapid amortization of principal. The village's direct debt burden is a low 0.9% of full value, increasing to a still below average 3% of full value when taking into account the overlapping debt of municipalities. Amortization of principal is rapid, with 83.5% of principal repaid within ten years. The village's capital improvement plan includes modest annual borrowing for various capital improvements over next five years. Moody's does not anticipate that these amounts will have a substantially increase the village's debt burden. Favorably, the village has no exposure to variable rate debt and is not party to any derivative agreements.

WHAT COULD MAKE THE RATING GO UP:

-Significant increase in General Fund liquidity and financial position

-Significant increase in tax base and wealth levels.

WHAT COULD MAKE THE RATING GO DOWN:

-Declines in the villages General Fund balance.

-Further declines in the village's Electric Department.

KEY STATISTICS:

2000 Population: 24,568

2011 Full value: $5 billion

2011 Full value per capita: $205,630

Direct debt burden: 0.9% of full value

Overall debt burden: 3% of full value

Payout of principal (10 years): 83.5%

2009 General Fund balance: $2.1 million (5.8% of General Fund revenues)

2009 Unreserved/Undesignated General Fund balance: $1.4 million (3.8% of General Fund revenues)

1999 Per Capita Income: $40,739 (174% of NY and 188% of US)

1999 Median Family Income: $103,315 (200% of NY and 206% of US).

Post-sale parity debt outstanding: $45 million

The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings and public information.

Moody's Investors Service considers the quality of information available on the credit satisfactory for the purposes of assigning a credit rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Analysts

Robert Weber
Analyst
Public Finance Group
Moody's Investors Service

Jessica A. Lamendola
Backup Analyst
Public Finance Group
Moody's Investors Service

Geordie Thompson
Senior Credit Officer
Public Finance Group
Moody's Investors Service

Contacts

Journalists: (212) 553-0376
Research Clients: (212) 553-1653


Moody's Investors Service
250 Greenwich Street
New York, NY 10007
USA

MOODY'S ASSIGNS Aa2 RATING TO THE VILLAGE OF ROCKVILLE CENTRE'S (NY) $7.1 MILLION PUBLIC IMPROVEMENT SERIAL BONDS, 2011
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com