Westchester County has achieved a trifecta in the bond ratings market with a new report from Fitch Ratings that confers its highest triple-A grade on the county”™s tax-supported general obligation bonds.Â
The county already had AAA bond ratings from Moody”™s and Standard & Poor”™s. Westchester is the only county in New York to receive that highest rating from two agencies, let alone three, according to county officials.
Analysts at Fitch, in upgrading long-term county bonds from an AA+ rating, said the upgrade and stable outlook “ reflect Fitch”™s expectation that the county will continue its practice of
conservative financial management and planning to address its ongoing high mandated and fixed-cost burden in order to maintain its financial flexibility.”
Noting Westchester”™s “moderate debt,” Fitch said its upgrade reflects the county”™s ability to deal with those mandates as well as a new cooperative agreement with the Westchester County Medical Center, which requires less financial exposure to county government and specific financial goals for the medical center. The county in its 2009 budget provided $13.5 million in support to the regional academic hospital in Valhalla, down from $15 million last year. Â
Westchester received similar favorable comments from analysts at Standard and Poor”™s when that agency  reaffirmed the county”™s AAA rating. “For several years, the county has prudently managed its financial position, overcoming expenditure pressures from a range of challenges, including rising Medicaid and pension costs and operational subsidies to the financially turbulent Westchester County Health Care Corp.,” the analyst said.
Fitch made its upgrade as part of the county”™s effort to sell approximately $135 million in general obligation bonds. It also upgraded the county’s $672 million in outstanding general obligation bonds. The ratings include four series of bonds issued for capital projects at the medical center.
County officials said the top ratings would save taxpayers on interest costs for bonds sold this month by the county.
“This kind of thing does not happen by accident,” County Executive Andrew Spano said in a statement. “We work hard every day to manage our finances efficiently, with strong fiscal controls. It is reassuring to us ”“ and should reassure our taxpayers ”“ that all three rating agencies have recognized what we do. This is particularly important in these trying financial times for individuals and governments.”
Spano commended Commissioner of Finance Kathy Thorsberg, Budget Director Anne Reasoner and County Attorney Charlene Indelicato and their staffs for their work. Â
