Printer Friendly

MOODY'S LOWERS RATING ON SULLIVAN COUNTY, N.Y., GENERAL OBLIGATION BONDS TO 'Baa' FROM 'A 1'

MOODY'S LOWERS RATING ON SULLIVAN COUNTY, N.Y., GENERAL OBLIGATION BONDS
 TO 'Baa' FROM 'A 1'
 NEW YORK, April 20 /PRNewswire/ -- Effective today, Moody's Investors Service lowered the rating on Sullivan County, N.Y.'s general obligation bonds to "Baa" from "A 1." This review was conducted in conjunction with the planned sale on April 22 of $16.5 million of county general obligation bonds.
 Moody's said, "The county's financial position has suffered a severe and rapid decline, resulting in the rating revision. After several successive operating deficits, the county General Fund has a significant accumulated deficit. Much of the problem stems from a sharp increase in delinquent property taxes. As the collector of unpaid taxes for its underlying units of government, the county bears the full burden of these delinquencies. Facing the additional challenges of minimal growth in sales tax receipts and continued pressure for increased expenditures, particularly in health and social services, the county has experienced a rising trend of year-end cash deficits, financed with a series of progressively larger TAN issues, including a $23.5 million sale in April."
 The county has responded by strengthening tax collection procedures and budgeting amounts in 1991 and 1992 to reduce the deficit and fund uncollected taxes. Despite these actions, the General Fund deficit grew further in 1991, and, although the increase was smaller than in the two prior fiscal years, it is clear that these measures have not been adequate to address the severity of the problem.
 The tax delinquencies are largely a symptom of the continuing difficulties afflicting the county's tourist industry. With several large resorts in bankruptcy and the summer home market slowed by recession, major elements of the county's tax base have ceased or delayed payment of taxes. While it is likely that the county will eventually collect a large portion of the outstanding taxes, by foreclosure if necessary, the timing of collections remains uncertain and may ultimately depend on the recovery of the local tourism industry. County officials are optimistic that at least two major delinquencies are nearing resolution. However, these cases represent only a part of the unpaid taxes outstanding, and, even if they are resolved, additional actions will be necessary to improve the county's financial position.
 Maintenance of credit quality at its current level depends on the development of a credible plan which demonstrates the county's willingness and ability to take actions as needed to restore balanced operations and make significant progress toward reducing the accumulated fund deficit. Moody's will continue to monitor the county's progress and take further rating action as necessary.
 Bonded debt outstanding: $42,520,000
 -0- 4/20/92
 /CONTACT: Michael Johnston, 212-553-7810; Kenneth B. Kurtz, 212-553-0834; or Brad Gewehr, 212-553-4789, all of Moody's/ CO: Sullivan County, N.Y. ST: New York IN: SU: RTG


GK-HM -- NY071 -- 0174 04/20/92 15:10 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:474
Previous Article:FMC REPORTS 41 PERCENT INCREASE IN FIRST QUARTER INCOME BEFORE EXTRAORDINARY ITEMS
Next Article:STONE & WEBSTER MANAGEMENT CONSULTANTS ELECTS RICHARD B. HIEBER AS PRESIDENT


Related Articles
MOODY'S LOWERS RATING ON NASSAU COUNTY, NEW YORK GENERAL OBLIGATION BONDS TO 'A'
MOODY'S COMPLETES REVIEW OF HOSPITAL RATINGS IN PENNSYLVANIA 1 UPGRADE, 8 DOWNGRADES
ALMOST $36 BILLION AFFECTED BY FIRST QUARTER MUNICIPAL BOND RATING REVISIONS; CALIFORNIA AND N.Y. LOWERINGS ACCOUNT FOR OVER $30 BILLION
MOODY'S LOWERS RATING ON NEW YORK MTA TRANSIT FACILITIES; NEW YORK CITY TRANSIT AUTHORITY REVENUE BONDS TO 'Baa' FROM 'Baa1'
MOODY'S ISSUES SPECIAL REPORT ON 40 MINNESOTA SCHOOL DISTRICTS
MOODY'S LOWERS RATING ON BUFFALO, N.Y. GENERAL OBLIGATION BONDS TO 'BAA' FROM 'BAA 1', CITES RAPID EROSION OF FINANCIAL POSITION
MOODY'S INVESTORS SERVICE REVISES THE CITY OF DETROIT'S GENERAL OBLIGATION UNLIMITED TAX BOND RATING TO 'Ba1' from 'Baa'
WORCESTER, MASS., GENERAL OBLIGATION RATING LOWERED FROM 'Baa1' to 'Baa'; FINANCIAL DETERIORATION CITED
MOODY'S LOWERS RATING ON UTICA, N.Y. FROM 'Baa' TO 'Ba'; CITIES FISCAL DISTRESS & LACK OF DEFINITIVE LONG-TERM PLAN TO RESTORE BALANCE
MOODY'S RAISES COMMONWEALTH OF MASSACHUSETTS GENERAL OBLIGATION BOND RATING FROM 'Baa' TO 'A'

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters