Standard & Poor’s Ratings Services has upgraded Hempstead Village’s bond rating from an A to an AA-, the agency’s second-highest credit rating.
The independent financial rating institution based the increase on the village’s general obligation serial bonds, pointing to a stable outlook on its overall finances and budgetary flexibility.
“This announcement is another step toward our mission of creating a better Hempstead for residents and building a strong local economy,” Mayor Wayne J. Hall Sr. said in a statement Wednesday. “The AA-/Stable rating further acknowledges the strength of the village’s management and financial practices, which have improved roads, decreased crime and developed local business, while remaining fiscally responsible. We are excited for what the future holds for the Village of Hempstead.”
In the report released last week, Standard & Poor’s cited the village’s strong management conditions and budgetary performance with a fiscal 2012 surplus of 2.4 percent for the general fund and 3.5 percent for the total governmental fund after adjustments for pension amortization and interfund transfers.
“The stable outlook reflects our expectation that Hempstead Village will continue to maintain very strong budgetary flexibility and adequate-to-strong budgetary performance over the two-year outlook horizon,” according to the report.
Standard & Poor’s also recognized the village’s strong regional economy due to access to the counties of Nassau and Suffolk, and New York City, as well as Hofstra University. The report also mentioned the “upward rating potential is limited, given the village’s sizable debt and contingent liability profile.”