Town of Mamaroneck Maintains AAA Bond Rating
Showing confidence in the Town of Mamaroneck’s financial strength, Moody’s Investor Service has maintained the Town’s AAA bond rating, the highest the agency issues.
The rating agency made the announcement in its evaluation of the Town of Mamaroneck Housing Authority’s $2.8 million Hommock’s Park Apartments Revenue Bonds to finance improvements to the facility. These bonds are guaranteed by the Town. The rating means that the agency has expressed a high level of confidence in the Town’s ability to pay back the debt.
“The Moody’s rating shows that the Town is in extremely good financial shape. That is great news for residents as it will allow us to borrow at the lowest possible interest rate so we can achieve higher savings,’’ said Town Supervisor Jaine Elkind Eney. “By issuing its highest rating, Moody’s has shown great confidence in the Town’s stability.’’
The company ranks the creditworthiness of borrowers using a standardized ratings scale which measures expected investor loss in the event of default. In Moody’s Investors Service’s ratings system, securities are assigned a rating from AAA to C, with AAA being the highest quality and C the lowest quality.
“The rating further reflects the town’s healthy financial position with strong reserves and liquidity, said Moody’s in its review. Moody’s added, “Its financial position is expected to remain healthy given management’s commitment to maintaining reserves at their current levels.’’