Nassau County gets bond rating upgrades from Moody's, Fitch

Two Wall Street credit rating agencies have issued bond rating upgrades for Nassau County while a third held steady, signaling what county officials described as a strong financial outlook and the ability to weather a possible recession.

The agencies, each with their own scoring system, provide independent analysis on the county's finances. Upgrades impact the ability to borrow at better rates for infrastructure projects, including those in a $1.5 billion capital plan approved last year.

"They like our approach and vision for the county," said Nassau County Executive Bruce Blakeman, who said he met with analysts from the agencies.

Nassau, with a $3.8 billion operating budget, has for more than two decades been under strict financial scrutiny stemming from a 1999 fiscal meltdown caused by overspending that brought the county to the brink of bankruptcy. For years, its bond ratings hovered just above junk status. 

In April, new reports showed continuation of an upward credit trajectory that has begun in recent years:

• Moody’s Investors Service upgraded the county for the second consecutive year, from an A1 to an Aa3 rating and affirmed a positive outlook. 
• Fitch upgraded the county from an A to an A+ rating, a move not seen since 2005, county budget officials said. 
• Standard & Poor’s held steady on a rating of AA- and stable outlook.

Nassau continues to rely on NIFA, the county's state-appointed fiscal oversight board, to approve its major borrowing and most vendor contracts. 

"We are grateful that NIFA's role is a credit positive," NIFA chairman Adam Barsky said in a statement Thursday. "Throughout the last few years, we have insisted on limiting the use of borrowing for operating expenses, provided restructuring of the county's debt, and helped negotiate long-term labor contracts that control cost that have had a structural impact on the county's financial outlook."    

Nassau and Suffolk finances benefited from the American Rescue Plan Act, the COVID-19 stimulus bill Congress approved in 2021. Nassau County received $385 million and Suffolk $286.8 million.

Suffolk, with a $3.7 billion operating budget, also has seen improved bond ratings.

In January, Moody’s upgraded Suffolk’s rating from Baa2 to A3 and reaffirmed its positive outlook, citing improved budgeting.

In August, S & P Global raised the county's rating from A- to A+ with a stable outlook. Fitch in February affirmed Suffolk’s A- and stable rating.

With Vera Chinese

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.