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

23 Sep 2025 | 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 a recent history of operating surpluses.
Substantial fund balance, which has greatly improved expenditure flexibility and cushions against economic downturn.
Favorable prospects for continued revenue generating ability.

Credit Challenges

Sales tax collections, which comprise roughly 45% of General Fund revenue, are economically sensitive.
Elevated fixed costs relative to governmental expenditures.

For Upgrade

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

For Downgrade

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.
Material and persistent declines in sales tax revenues given the statutory limitations on property tax growth.
Significant, unbudgeted expenditures which impact structural budgetary balance.

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