Citing a healthy operating surplus, a large tax base, and growing reserves, Moody’s Investors Service has recently upgraded the Herkimer County general obligation rating to Aa3 bond rating from A1 bond rating.
An Aa3 rating is the second highest rating that can be received by Moody’s and signifies Herkimer County as high quality with a very low credit risk with the best ability to re-pay short term debt.
Moody’s believes that the county’s debt profile will remain manageable given its sizable tax base, population stability, modest future borrowing plans, and nominal direct debt burden.
According to Herkimer County Legislators, the upgrade in the County’s bond rate will be beneficial to any refinancing that is considered and is a testament to hard work done by the Legislature and in particular, the Ways and Means Committee, to build up operating reserves and keep debt low.
“Our healthy financial position is a direct result of our conservative management style as mentioned in the report, as well as taking the difficult but necessary steps in managing county government on a day to day basis,” said Patrick Russell, Herkimer County legislator and chairman of the Ways and Means Committee.
