Wall Street upholds Nassau credit rating

Wall Street has upheld Nassau's current credit rating despite the county's strained finances.

With Nassau planning to borrow $210.9 million by the end of April to pay for construction projects, employee severance and court judgments, Moody's Investors Service this week affirmed the county's "A1" rating and continued a negative outlook.

Standard & Poor's Thursday upheld Nassau's "A+" long-term rating and Fitch Ratings last week continued its "A+" rating. Both reported Nassau's financial outlook is stable.

"I am pleased that all three rating agencies affirmed the county's ratings when all municipalities are facing extreme fiscal stress," said County Executive Edward Mangano.

Moody's and S&P credited the Nassau Interim Finance Authority, a state board that took control of the county's finances last year, for helping the county balance its $2.6 billion budget -- though Fitch said NIFA has made decision-making "more cumbersome."

S&P said Nassau "has made significant strides" in reducing costs. But Moody's said its negative outlook reflects doubts that the county can quickly achieve a balanced budget. The county projects a $69 million deficit by year's end without additional spending cuts.

Suffolk County currently has the same Moody's rating and outlook.