Suffolk County Earns Major Bond Rating Upgrade From Fitch and S&P

HAUPPAUGE, N.Y. — Two leading credit agencies, Fitch Ratings and S&P Global Ratings, have upgraded Suffolk County's bond rating to "AA-," Executive Ed Romaine announced today, reflecting what both agencies called strong financial management, growing reserves, and responsible long-term planning.

A bond rating measures a government's creditworthiness — essentially, how safe it is for investors to lend money to the county. The higher the rating, the lower the interest rates the county pays when it borrows money for major projects, saving taxpayer dollars in the process.

Fitch raised Suffolk's overall financial grade, known as its Issuer Default Rating, two notches to "AA-." The agency cited the county's improved cash flow (known as liquidity), steady growth in savings, and careful budgeting.

S&P Global Ratings affirmed the same "AA-" grade for the county's upcoming sale of $188.7 million in General Obligation (GO) Bonds, a type of bond backed by the county's taxing power.

Those funds will help pay for key capital projects — from infrastructure improvements to public facility upgrades.

"This upgrade is a resounding vote of confidence in Suffolk County's fiscal turnaround," Romaine said in a statement. "Through careful planning, responsible budgeting, and a commitment to transparency, we've restored financial stability and positioned the county for a sustainable future. This means lower borrowing costs for critical projects and long-term savings for taxpayers."

Fitch noted that Suffolk's unrestricted reserves — money set aside for general use — have reached $276 million, equal to about 10 percent of annual spending. When factoring in funds tied to tobacco settlement accounts, that number rises to 15 percent.

The agency also highlighted an additional $543 million in restricted reserves, which are funds dedicated to specific needs such as pensions and debt payments. S&P's report praised Suffolk's "large and diverse economy, above-average household incomes, and prudent financial performance," pointing out that the county now holds record-level savings — or reserves — totaling more than 219 percent of annual revenue.

Both agencies commended county leaders for reducing reliance on one-time revenues (temporary funding sources), responsibly adjusting the tax levy (the total amount collected through property taxes), and investing in modern technology and cybersecurity.

The upgrades come as the county continues advancing more than $1.5 billion in water quality and sewer projects, supported by state and federal grants. Voters recently approved a small sales tax increase — one-eighth of one percent — to fund wastewater improvements, further strengthening the county's infrastructure and environmental resilience.

The new "AA-" rating applies to the county's Series 2025A Public Improvement Bonds, scheduled for competitive sale on Oct. 23, which will fund additional county projects.

"This achievement is proof that collaboration works," said Legislature Presiding Officer Kevin J. McCaffrey. "The legislature and county executive's office have worked together to restore confidence in Suffolk's finances, manage taxpayer dollars responsibly, and plan for the long term. Together, we've built a stronger, more resilient Suffolk County."