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Mayor Madden: Troy Bond Rating Revised, Given Stable Outlook by Moody’s Investors Service

April 19, 2017

FOR IMMEDIATE RELEASE | APRIL 19, 2017

Mayor Madden: Troy Bond Rating Revised, Outlook Changed to Stable by Moody’s Investors Service

City issuer rating affirmed as A2 with outlook changed from negative to stable

Moody’s: “stable outlook reflects city management’s recent steps to build structurally balanced budgets”


TROY, NYMayor Patrick Madden today announced the City of Troy’s bond credit rating has been affirmed as ‘A2’ with a revised outlook from negative to stable by Moody’s Investors Service. The City of Troy’s two previous bond ratings had a negative outlook. The recently released report notes “the stable rating outlook reflects city management’s recent steps to build structurally balanced budgets as well as recent stabilization in the tax base.” Mayor Madden issued the following statement regarding the revised issuer rating:

“The removal of the negative outlook from the city’s bond rating by Moody’s affirms my administration’s ongoing efforts to restore Troy’s financial standing, critically important to continuing the economic growth, investment and revitalization occurring across our city. The goal of removing the negative outlook was a top priority, and today’s announcement represents another positive step in the right direction toward getting Troy’s fiscal house in order and demonstrates the continued progression of improvement to the condition of our city’s finances. We will continue to make the difficult decisions to strengthen the city’s financial foundation and set us on a path toward future prosperity for all Trojans.”

According to Moody’s, “the fiscal 2017 budget demonstrates a willingness to balance operations without recourse to the city’s already narrow reserves and strong fiscal management that relies on recurring revenues and trend-based expenditure estimates.” The stable outlook of the city’s bond rating is reflective of the administration’s efforts to grow city reserves, fact-based budgeting, and effective management of city debt. Moody’s cautions that several factors could lead to a downgrade, including further declines in available Operating Fund balance, and a return to structurally imbalanced budgets.

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Moody’s rating action report can be viewed here: https://www.moodys.com/research/Moodys-Revises-Troy-NYs-Outlook-to-Stable-Affirms-A2-Issuer--PR_903969693

MEDIA CONTACT:

John Salka, Deputy Director of Public Information
John.Salka@troyny.gov / (518) 279-7131