KBRA Affirms AA+ Rating on County of Rockland, NY General Obligation Bonds; Outlook Stable

25 Sep 2024 | New York

KBRA affirms the long-term rating of AA+ on the County of Rockland, NY General Obligation Bonds. The Outlook is Stable.

The rating was affirmed because of the following key credit considerations:

Credit Positives

Solid General Fund revenue performance, spending controls, and conservative budgeting practices have contributed to structural budgetary balance, with operating surpluses realized in each of the last seven fiscal years.
The County has amassed substantial fund balance which has greatly improved expenditure flexibility and cushions against economic downturn.
The County’s resource base affords favorable prospects for continued revenue generating ability.

Credit Challenges

Sales tax collections, which comprise roughly 58% of General Fund revenue, are economically sensitive.
Expenditures could increase if the County is required to assume responsibilities for sheltering asylum seekers.

For Upgrade

Continued trend of favorable operating performance supporting a robust financial reserve and liquidity profile.
Improved growth in property tax revenues, within the constraints of the Tax Levy Limitation Law, that reduces the County’s reliance on volatile sales tax revenues.

For Downgrade

Difficulty in navigating recessionary pressures given reliance on sales tax revenues and the statutory limitations on property tax growth.
A drawdown in unassigned fund balance below the County’s targeted level of 10% of General Fund operating expenditures, or evidence of sustained deterioration in liquidity.
Significant, unbudgeted expenditures which impact structural budgetary balance.
Failure to continue to follow the conservative budgeting and expenditure policies adopted during the period of State oversight.

To access rating and relevant documents, click here.