Moody’s Investors Service has assigned a Aa2 rating to the Village of Ossining, New York $4.7 million Public Improvement (Serial) Bonds, 2018 and $6.2 million Public Improvement Refunding (Serial) Bonds, 2018. Moody’s maintains a Aa2 rating on the village’s outstanding GO Limited Tax (GOLT) debt and Issuer Rating. The Issuer Rating is equivalent to the rating we would assign to GO Unlimited Tax (GOULT) debt of the village. We consider the outstanding debt to be GOLT because of limitations under New York State law on property tax levy increases. The lack of distinction between the GOLT rating and the GOULT issuer rating reflects the village board’s ability to override the cap.
Ratings rationale
The Aa2 rating reflects the village’s stable financial operations with healthy reserve levels, moderately sized tax base, average wealth levels, and manageable debt burden.
Rating outlook
Moody’s does not normally assign outlooks to local government credits with this amount of debt outstanding.
Factors that could lead to an upgrade
- significant tax base expansion;
- significant improvement in wealth and income profile.
Factors that could lead to a downgrade
- deterioration of wealth and income profile;
- significant increase in debt burden;
- operating deficits resulting in material depletion of financial reserves.
Legal security
The bonds are secured by a General Obligation pledge as limited by the Property Tax Cap – Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).
Use of proceeds
Proceeds from the Public Improvement bonds, together with $605,061 in available cash will redeem $2.7 million in outstanding bond anticipation notes, which mature on September 28, 2018, and provide original financing for various village capital improvements. Proceeds from the Public Improvement Refunding Series will refund the 2007 and 2010 bonds for an estimated net present value savings of $302,880, or a 4.7% of the refunded principal.
Profile
The Village of Ossining has a population of approximately 25,400 and is located 30 miles north of New York City in Westchester County.
Methodology
The principal methodology used in these ratings was US Local Government General Obligation Debt published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Regulatory disclosures
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on moodys.com for additional regulatory disclosures for each credit rating.
Vlаdimir Рuсhеk
Lead Analyst
Regional PFG Northeast
Moody’s Investors Service, Inc.
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