Oyster Bay Sees Third Credit Rating Increase This Year

OYSTER BAY, NY — The Town of Oyster Bay received a third long-term credit rating upgrade this year from Standard & Poor's Global Ratings, a Wall Street credit rating agency, for improved budgetary performance, according to Supervisor Joseph Saladino and the Town Board.

On July 9, the S&P Global Ratings increased the Town's rating by two notches — from BBB- to BBB+. In awarding the credit rating boost, S&P Global Ratings cited the Town's "improved budgetary performance leading to a substantially improved financial position," in addition to the Town's cost-cutting and resolutions of legal challenges without financial effect.

This is the fourth upgrade since Saladino took office in 2017, and the second increase seen in July.

In February 2020, Moody’s Investors Service increased the Town’s long-term credit rating while maintaining its "positive" outlook, and earlier this month, Moody’s upgraded the Town’s long-term and short-term credit rating. The Wall Street firm last upgraded the Town’s long-term credit rating from junk to investment grade in 2018 and affirmed its stable outlook.

“These upgrades recognize the many positive steps taken by my administration and the Town Board to repair the financial problems of the past and bring fiscal stability for taxpayers," Saladino said. "We’ve successfully restricted spending, significantly paid down debt and maintained a $4 million tax cut for residents. We’re just getting started and 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 while reducing debt and the operational budget deficit. Both the 2019 and 2020 Town Budgets sustained a $1.3 million property tax cut approved by the Town Board for 2018 by implementing a plan that froze taxes in both years. Total Town debt has also declined, from a high of $763 million to $603 million at the beginning of 2020. In addition, Saladino and the Town Board eliminated a multi-year operational deficit which hit a high of $44 million under the prior administration, turning it into a $27.4 million surplus as of December 31, 2019.