Great News for Hempstead: S & P Gives Village’s Serial Bonds A rating
by Aisha Al-Muslim
Published: August 6, 2012
Standard & Poor’s Ratings Services has assigned an A long-term rating to the Village of Hempstead’s $7.19-million general obligation serial bonds, pointing to a stable outlook on its overall finances.
In the report released Thursday, Standard & Poor’s cited the village’s strong regional economy due to access to the counties of Nassau and Suffolk, and New York City.
The report also mentioned the village’s improved financial position since the implementation of a recovery plan that included the issuance of deficit bonds in 2007.
Standard & Poor’s also recognized the village’s improved tax collections, bolstered by annual tax lien sales, and its “moderate” debt burden. The rating also incorporates offsetting factors such as the “continued contraction” of the village’s base due to the housing market downturn and the tax certiorari petitions, as well as the village’s “sizeable” post-retirement health care benefits liability. The international credit rating agency also affirmed the A underlying rating on the village’s previously rated general obligation debt.
Proceeds of the bonds will be used to permanently finance $1 million in bond anticipation notes outstanding and pay for various capital acquisitions and improvements, according to the report.