Moody’s Reaffirms Islip’s Aaa Rating For A 3rd Time

October 9th, 2018 – Islip Town Supervisor Angie Carpenter is pleased to announce that recently, Moody’s Analytics, Inc. reaffirmed the Town’s financial Aaa status with a stable outlook for the third consecutive time. The Town’s rating was first upgraded in March 2016 to Aaa, was reaffirmed Aaa in September 2016, again in September 2017, and for a third time in October 2018.

The rating agency announced in its Aaa reassignment, “Moody’s Investors Service has assigned a Aaa to Islip’s $14.6 million Various Purpose Serial Bonds.” Moody’s also maintains the Town’s Aaa issuer rating on the Town’s outstanding debt. This very positive “Aaa rating reflects Islip’s strong credit profile, including a healthy financial position, large tax base poised for future growth, above-average wealth and incomes, and manageable debt.” The investor service also noted that, “The stable outlook reflects the expectation of continued strong operations given prudent management and continued growth and diversification in the local economy.”

“I am pleased that together with the cooperation of the Town Board, we were able to maintain our strong budget process. We worked closely with our Commissioners to tighten budgets as necessary, making certain that each and every taxpayer dollar spent is done with the utmost scrutiny. We have instituted and continued zero-based budgeting to our spending plans, assuring that no projects move forward unless they are deemed truly essential. These are the strategies that enabled us to get the initial upgrade early in 2016, and which was reaffirmed later that year and in subsequent bond agency reviews. With this in mind, we have been working on the budget,” said Supervisor Carpenter, “to make certain that the 2019 Operating budget is tax-cap compliant.”

Supervisor Carpenter and staff met in March 2016, with representatives from Moody’s, closely analyzing the Town’s financial documents and conducting a tour of Islip’s tremendous resources. At that time, Moody’s upgraded the Town’s bond rating to Aaa, the highest rating that can be assigned to a municipality.

“Our willingness to look at the process realistically is something that continues to have a positive impact with the rating agencies. The goal always has to be, to maximize our revenues and decrease our expenditures,” said Joseph Ludwig, Town of Islip Comptroller.

Moody’s financial ratings are used by banks and others in the financial services industry, to determine the financial health of a given organization.

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