Jan. 15, 2009

Commending the Westchester County government for its “conservative and prudent financial management” and “moderate debt,” Fitch Ratings has become the latest bond rating agency to give Westchester County government its highest rating: Triple A.

Westchester is the only county in the state to have a AAA bond rating from even two agencies. Fitch, in upgrading the county from a AA+, joins Moody’s and Standard & Poor’s in expressing its confidence in how the county finances are managed. This gives the county a Triple Triple A.

County Executive Andy Spano said he was gratified by the recognition of the county. “This kind of thing does not happen by accident. We work hard every day to manage our finances efficiently – with strong fiscal controls,” he said. “It is reassuring to us – and should reassure our taxpayers – that all three rating agencies have recognized what we do. This is particularly important in these trying financial times for individuals and governments.”

“The upgrade and Stable Outlook reflect Fitch's expectation that the county will continue its practice of
conservative financial management and planning to address its ongoing high mandated and fixed-cost burden in order to maintain its financial flexibility,” Fitch said in its report.

Similar praise for Westchester came from Standard and Poor’s in its reaffirmation of the county’s AAA rating. “For several years, the county has prudently managed its financial position, overcoming expenditure pressures from a range of challenges, including rising Medicaid and pension costs and operational subsidies to the financially turbulent Westchester County Health Care Corp,” the rater said. “…The outlook is stable. Conservative budget and financial management practices have enabled the county to effectively manage its budget pressures while maintaining a consistent financial position and healthy reserve levels.”

The top ratings translate into savings on interest costs for Westchester taxpayers when the county sells bonds Jan. 22. Fitch made its upgrade as part of the county’s effort to sell approximately $135 million in general obligation bonds. Fitch also upgraded the county's $672 million in outstanding general obligation bonds.
Fitch said its upgrade reflects the county’s ability to deal with those mandates as well as a new cooperative agreement with the Westchester County Medical Center, which requires less financial exposure to the county government and specific financial goals for the medical center.

Spano commended Commissioner of Finance Kathy Thorsberg, Budget Director Anne Reasoner and County Attorney Charlene Indelicato and their staffs for their hard work.