The credit-rating agency Moody’s Wednesday upgraded its bond rating for the Village of Mineola.
In announcing the upgrade to Aa3 from A1, the agency cited the village’s stable tax base, modest debt burden and history of surpluses.
It also cited an improved financial position, including an increase of the general fund balance to $3 million in 2010, up from $1.2 million in 2006.
“Moody’s expects the village’s sizable $2.6 billion tax base to remain stable given ongoing redevelopment, the community’s proximity to New York City 20 miles away and its role as the county seat of Nassau County,” the company said in a release about the rating.
The highest bond rating is AAA. A1 is considered a high quality rating.
A bond rating is an indication of an entity’s credit risk. The better the rating, the better the credit, so the municipality will qualify for lower interest rates on the money it borrows through the sale of bonds.