The Village of Westbury’s credit rating is on the up and up. Standard and Poor’s Rating Services (S&P) recently upgraded the village’s bond rating from AA to AA+, the fourth rating upgrade to village credit in five years. AA+ is the second highest credit rating available.
The credit review and upgrade is in connection with the village’s latest bond offering. In issuing the rating increase, S&P cited “Westbury’s consistently very strong budgetary flexibility, very strong budgetary performance, and very strong liquidity.”
Mayor Peter Cavallaro, Village Clerk and Treasurer Ted Blach and David Tanner of Liberty Capital Services (the village’s bond consultant) recently made a detailed presentation to S&P regarding the village’s finances, budget outlook, economic trends and future plans. Blach indicated that the agency seemed impressed by the village’s management, accounting and financial systems, financial discipline, and overall financial health.
“The upgrade by S&P in our credit rating in a challenging economic environment is especially meaningful,” said Cavallaro. “I and the members of the Board of Trustees are very gratified that an independent, objective agency acknowledges and affirms the fiscal discipline that we have exercised with respect to village finances.”
Cavallaro indicated that the current $1.5 million bond offering will replace debt that has been paid off in recent years, and the funds will be used to continue the village’s aggressive road resurfacing program, make repairs and perform maintenance at Village Hall (including replacement of windows and portions of the old HVAC system), and to purchase needed equipment for the Department of Public Works.
“The current low interest rate environment is an excellent time for the village to borrow money needed to make necessary capital improvements,” said Cavallaro. “With the bond offering, we are not increasing our historical debt load, but simply replacing higher interest debt with lower interest debt. As S&P pointed out, our debt load is very low, and very reasonable.”
“The higher credit rating will allow the village to obtain the best possible terms and the lowest possible interest costs on our bonds,” Blach added.
“Hopefully this upgrade will give our current residents and business owners, as well as those looking to do business or live here, the comfort of knowing that the village continues to be fiscally strong and well managed, and the sense that Westbury is an economically attractive place to live, work and do business,” Cavallaro said.
