Moody's Upgrades Town Of Oyster Bay's Bond Rating

TOWN OF OYSTER BAY, NY — The Town of Oyster Bay's bond rating was upgraded this week by Moody’s Investors Service in recognition of the town's improving financial outlook. Moody's upgraded the town’s long-term bond rating from Baa2 to Baa1 with a "positive outlook" and upgraded its short-term obligation rating from MIG3 to MIG2.

"Moody's Investors Service has assigned a Baa1 rating to the Town of Oyster Bay, NY's $53.9 million Public Improvement Refunding (Serial) Bonds, 2020," the credit rating agency said on its website. "Concurrently, we have upgraded the issuer and general obligation limited tax (GOLT) ratings to Baa1 from Baa2. And upgraded the town's outstanding BAN rating to MIG 2 from MIG 3. The outlook remains positive."

Moody's noted that its MIG 2 rating reflected the town's "weak, albeit improved underlying credit quality (reflected in its Baa1 positive long-term rating), adequate liquidity, and demonstrated history of market access."

The town said it's the third time its received a bond rating upgrade since Joseph Saladino, the town supervisor, took office, as well as the third positive declaration from Moody’s.

In awarding the bond rating increase, Moody’s cited Saladino and the Town Board’s efforts in getting the town "on the road to healthier finances," and said "there is now every indication that the Town’s efforts will culminate in a successful restoration of financial health."

The report also touted the town’s successes in cutting costs, eliminating the need for cash flow borrowing and successful resolution of key litigation. Furthermore, Moody's analysts said they "do not see any material immediate credit risks" and that the ongoing pandemic was "only a small speed bump in the town’s progress."

Wall Street continues to recognize the positive steps taken by Saladino's administration and the Town Board to fix the financial problems of the past and bring the town back to fiscal stability, Saladino said.

"In just three years, we have received three bond rating upgrades and an increased outlook designation from Wall Street," he said. "We’ve successfully restricted spending, significantly paid down debt and maintained a tax cut given to residents in 2018. And we’re just getting started, as we will continue to keep our promise to taxpayers by protecting their wallets while sustaining services."

Since taking office in 2017, Saladino and the Town Board have cut property taxes and reduced debt and the operational budget deficit, his office said.