By Melanie Lekocevic
Capital Region Independent Media
CATSKILL — Greene County’s bond rating was upgraded to the second highest rating on the scale, reflecting an improved financial standing.
The rating is issued by Moody’s Investors Service, which provides credit ratings that evaluate the risk and creditworthiness of bonds issued by governments, municipalities and other entities. The ratings are used by investors and financial professionals and reflect the financial health of the county.
The change in the county’s credit rating was issued by Moody’s on Nov. 27.
Greene County went from a rating of Aa2 to Aa1. The highest rating is AAA, which is one level higher than the county’s Aa1 rating.
“The upgrade to Aa1 reflects the improvement in the county’s financial position that is expected to remain steady going forward in part due to conservative budgeting around the county’s sales tax receipts, which are up 4% year to date,” according to a statement from Moody’s. “Additionally, the upgrade reflects the reduction in the county’s long-term liability profile with no additional debt expected following the issuance of the 2024 notes.”
The improved rating means the county can benefit from lower interest rates on debt, which would be a savings for taxpayers.
Greene County Legislature Chairman Patrick Linger, R-New Baltimore, said the upgraded rating will save money for the county and its taxpayers.
“Our Greene County Legislature’s conservative, forward-looking fiscal policies continue to deliver value to our residents and support financial sustainability and economic confidence,” Linger said. “This upgrade to our credit rating will save substantial taxpayer dollars as we continue to upgrade and improve our communities with capital projects that benefit all.”
The rating reflects the county’s financial health, Greene County Administrator Shaun Groden said.
“The county Legislature and its financial management team continues to make fiscal responsibility core to everything they do,” Groden said. “The practices they employ are a major part of the reason Greene County has received its second upgrade in five years.”
The county is now one of seven counties outside New York City with an Aa1 rating, including Dutchess, Orange, Putnam and Saratoga counties, and is the only county in the state with an Aa1 rating or higher that is considered rural/non-urban, according to the county.
Factors that can lead to an upgraded rating include improvement in resident income above 120% of the U.S. median or sustained economic growth above the U.S. median, according to Moody’s.
Moody’s cited the income growth of county residents and fiscal health for the upgraded rating.
“The Aa1 issuer rating reflects a moderately sized tax base with above average resident incomes and growing wealth levels with full value per capita increasing by 15% since 2019,” according to Moody’s.
The county’s reserves and liquidity of over 60% in 2023 and “manageable long-term liabilities” such as debt and pensions also contributed to the rating upgrade.