S&P Downgrades Rockland County And Blames Albany

1

Standard & Poor’s Ratings Services today lowered its bond rating again for Rockland County to one-level above junk-bond status after the state Legislature last week failed to give the struggling county the ability to borrow to pay off growing debt.

The state Senate didn’t pass a bill that would have let Rockland borrow up to $80 million by the end of 2013. The measure was caught up in a fight between the Assembly and Senate over a similar package for Nassau County.

As a result, S&P today lowered the county’s long-term rating to ‘BBB-‘ from ‘BBB+’. (h/t to Bloomberg’s Freeman Klopott.)

“We lowered the rating on the county’s GO debt due to the continued erosion of its financial position and once strong reserves,” said Standard & Poor’s credit analyst Danielle Leonardis in a statement. “In addition, projections show a negative balance in the county’s total and unreserved general fund balance for fiscal years 2011 and 2012.”

The statement said that the county can’t issue deficit-reduction bonds because the Legislature didn’t act. S&P said that some of the savings the county is seeking must come through labor negotiations and are uncertain.

“This leaves uncertainty about bridging a potential $40 million budget imbalance for fiscal 2012,” the rating agency said.

The downgrade comes on the heels of previous fiscal warnings from S&P and Moody’s.

Share.

About Author

1 Comment

  1. WHAT AN ANOLOGY! LOL! If the Urinals are dirty ( for example where every Man Pees.. and never flush! ) Now! The WC ( where People are Supposed to Shit ) complains ( in this CASE STUDY ALBANY BEING THE WC ) LOL!… And, S&P BEING THE GENATOR or BATHROOM Attend! … SAYING that THE URINALS ( ROCKLAND COUNTY) is stinking but BLAMES the WC ( ALBANY) !….

    This is what I gather trying my best to comprehend what did just happened!.

    CONCLUDING, ( as we are not in 1948/1959 era! And, The Hoax of GLOBAL BULL@%*T what is called the World Bank that should never have been established replacing THE IDRB! NOW!… I totally am not in Favour of An External Imposed System on My Country…THE UNITED STATES DEPARTMENT OF TREASURY must have this Power to “grade” if any at all! Not S&Ps, MOODYs etc., etc.,

    We are a Free Nation with a Free Economy. But! these types of lebeling does not Suit Our National Strature, Soverigenty, and Rule of Law!

    America is not China! Washingtonions don’t have The “Huntsman” mantality! And, we will not let any ” GLOBALISATION take over Our National Interests.

    S&P should have some shame; and crossing Our Federal Lines Our Bloodstreams WE MUST NOT ALLOW ANYONE to Put Our Nation down!

    HABIBHASAN-An AmericanvStoryteller