Oyster Bay, NY GO Bond Outlook Revised To Positive On Restored Fiscal Stability

Stocks and Financial Services Press Releases Friday March 10, 2017 08:55
BOSTON--10 Mar--S&P Global Ratings

BOSTON (S&P Global Ratings) March 9, 2017--S&P Global Ratings has revised the outlook on Oyster Bay, N.Y.'s general obligation (GO) bonds to positive from negative. We also affirmed our 'BB+' long-term rating on the bonds.

"The outlook revision reflects the steps the town has taken to restore structural balance and begin replenishing its accumulated negative reserve balance," said S&P Global Ratings credit analyst Victor Medeiros. For the fiscal 2017 budget year, the town adopted a budget that included an 11.5% property tax levy increase that is anticipated to generate $24 million in new revenues. In addition, it recently settled labor union contracts that would roll back labor costs by 2% in 2017 and 2018, although they would then be restored in 2019 and raised 1.9% annually in 2020 and 2021.

"We believe these actions, coupled with realistic budgetary assumptions, are sufficient to stabilize fiscal operations in 2017, and over the next two years, could improve budgetary performance, budgetary flexibility, and liquidity factors to levels commensurate with an investment-grade rating," said Mr. Medeiros.

Oyster Bay, with an estimated population of 295,714, is in Nassau County in the New York-Newark-Jersey City metropolitan area.

"We believe the town continues to face budgetary pressures as fixed costs escalate and liquidity remains weak, leaving it vulnerable to financial deterioration, particularly if the business, financial, or economic environment worsens," added Mr. Medeiros. However, stronger revenue and assumption practices, coupled with a roll-back of union salary costs, savings from attrition and retirement, and a substantial tax levy increase, are positive steps in the town's financial management and its ability to achieve structural balance and begin restoring reserves. Over time, a track record of stronger budgetary performance through stronger financial management practices and policies could likely improve the town's overall credit quality and rating.


Latest Press Release

Echoworx expands EU reach with new German data centre

Echoworx is pleased to announce the opening of their new data centre in Germany. This move further entrenches Echoworx's presence and competitive edge within the EU region. Known for its proven manufacturing industries, from automotive to...

EXIM Thailand Holds FX Risk Management Seminar Phase 2 to Promote the Use of FX Risk Hedging Tools for SME exporters

Mr. Chana Boonyachai (right), Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mrs. Varintorn Chaivivat (left), Vice-Director, Northern Region Office, Bank of Thailand and Mr. Kobsak Duangdee (center),...

Photo Release: Prudential Thailand organizes Agency Kick Off 2019

Mr. Aman Chowla (7th from right), Chief Executive Officer, Prudential Life Assurance together with Mr. Wichai Cheewasrirungruang (6th from left), Chief Agency Officer, Prudential Life Assurance and the executive management of Prudential Life Assurance...

Photo Release: Bangkok Bank welcomes R3 members to the first Voltron project workshop in Thailand

Bangkok Bank Executive Vice Presidents Pornnit Dunnvatanachit , Kukkong Ruckphaopunt and Senior Vice President and Trade Finance Center Manager Kajohnsak Manaviriyakul welcomed R3 members who joined a Voltron project workshop, the first to be held in...

ZEN Corporation Group Plc. to sell 75 million IPO shares after SEC approved Filing Count 1 Highlights food service business Raises fund for branch expansion and restaurant improvements

'ZEN Corporation Group Plc.' or ZEN is preparing to make its Initial Public Offering (IPO) of 75 million shares after the Securities and Exchange Commission (SEC) approved its Filing Count 1. The group is highlighting its food service business which...

Related Topics