MOUNT VERNON, N.Y. – Two series of bonds worth approximately $5 million issued by Mount Vernon were given a negative outlook by one of the nation’s top financial rating services.
Moody’s Investor Service – which has been rating securities for more than a century – assigned an A1 rating on two series of bonds worth a total of $4.7 million
“The rating considers the recent narrowing of reserves through structurally imbalanced operations,” Moody’s said. “Moody’s expectation that the city will be challenged to rebuild fund balance and cash position over the medium term.”
The medium-sized tax base and manageable debt burden were cited as reasons for the A1 rating, which is the third highest distinction, behind Aaa and Aa. It was considered to be a red flag that Mount Vernon officials routinely are forced to rely on the city’s reserves.
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