Moody's Investors Service has assigned an Aa3 (4th Highest Long-Term Prime Investment Grade Available) to the Village of Port Chester, New York's $14.5 million Public Improvement Serial Bonds, 2021. Moody's maintains a Aa3 rating on the village's outstanding general obligation limited tax (GOLT) debt and the village's Aa3 issuer rating.
The Village of Port Chester, NY's credit profile benefits from its favorable location within commuting distance to the city of New York (Aa2, negative). The credit profile incorporates the village's modest, but growing fund balance and operations which generated a small but positive 1.1% margin in 2020 and a balanced fiscal 2021 budget. The rating also incorporates, below average resident wealth and incomes for the region, elevated fixed costs, and elevated leverage. It will be critical over the coming years for the village to continue to grow its fund balance and cash levels to support its operational flexibility.
» Proximity to employment centers
» Expanding tax base and property values » Growing fund balance and cash position
Factors that could lead to an upgrade
» A trend of operating surpluses, leading to growth in liquidity and reserves
» Material tax base expansion
» Reduced leverage and fixed costs
Please read see below for:
Moody's Credit Opinion- Village of Port Chester
Moody's Rating Action- Village of Port Chester