Glen Cove's outlook raised by Moody's to stable
A bond rating company has revised its outlook on Glen Cove upward from negative to stable. Moody's Investors Service Monday also affirmed its Baa 3 rating on the city's $40 million in outstanding general obligation debt.
The revision of the outlook to stable reflects stabilizing financial operations over the past two years, Moody's said. It added that the city projects surplus operations in fiscal 2013 and budgeting practices continue to improve.
"The Baa 3 rating reflects the city's distressed financial position, as demonstrated by a sustained negative fund equity position for the last nine years (2002 through 2012), despite the issuance of deficit reduction bonds in 2007 and management's efforts to restore balanced operations," Moody's said.
The company added that "the rating also incorporates an economic base that includes above average income and wealth levels and a debt burden that, while moderate relative to the city's tax base, comprises a significant portion of the city's budget and is exposed to market fluctuations."