Huntington credit rating maintained at AAA level, but with concerns about deficit

The three major credit rating agencies have maintained Huntington's AAA rating, although two gave the town a negative outlook because of deficits posted in 2013 and 2014.

While Moody's Investors Service and Fitch Ratings declared the town's ratings outlook as negative, both Manhattan-based agencies also projected improved financial performance based on 2015 and 2016 budgets. Manhattan-based Standard & Poor's said the town's outlook was stable.

"At a time when other towns have been downgraded, Huntington has maintained its AAA bond rating, which as the ratings agencies noted, is a result of sound fiscal management by the supervisor and the board," said town spokesman A.J. Carter.

Huntington officials passed budgets in 2013 and 2014 that drew down reserves in the general fund. The strategy held the tax levy down while maintaining programs, but it also took Huntington's reserves below the town's target of maintaining at least 10 percent of spending.

Town officials are expecting to end 2015 with a surplus, and Moody's noted that Huntington's five-year forecast indicates a reduction in annual reserve appropriations. Fitch projections were also optimistic that Huntington was on track to restoring its reserve balance.

"If projected results for 2015 and 2016 are realized, demonstrating a commitment to maintaining adequate reserves, the outlook may be revised to stable," Fitch officials said in a statement.

The AAA rating affects Huntington's $95 million in outstanding bonds and a $12.9 million bond sale planned for next week.

"As all the agencies noted, the town limits its borrowing, but when we do [borrow], these AAA ratings help the town obtain the most favorable interest rate, saving money for town taxpayers now and well into the future," Petrone said in a statement.