A bond rating agency has lowered the ratings of Islip’s general obligation bonds, citing the town’s “adequate” budgetary performance and management conditions.
Standard & Poor’s has lowered the rating to AA+ from AAA, with a stable outlook.
“Our previous negative outlook on the debt reflected our view of the town’s ongoing structural misalignment, which we are now accounting for in our assessment of Islip’s budgetary performance pursuant to the new criteria,” said S&P credit analyst Lindsay Wilhelm in a news release.
Despite the downgrade, S&P noted the town’s “strong local economy,” “very strong, although declining, budgetary flexibility,” and “very strong liquidity” as factors for the bond rating.
The town could improve its bond rating with “bolstered financial policies coupled with improved budgetary performance and improvement in the town’s economic indicators,” according to S&P.