White Plains' Negative Financial Rating Upgraded to Stable

Moody's Investors Service has re-affirmed the City of White Plains Aa1 credit rating, which is the second highest rating a municipality can receive - just below a "triple-A."

White Plains Mayor Thomas M. Roach said this has revised the city's outlook from negative to stable. 

The City of White Plains received a negative outlook in December 2009. Roach said the change back to a stable outlook status can be attributed to the city's demonstrated ability to restore its fund balance reserve levels, properly balance its budgets and take actions that have strengthened it's financial position, such as reducing the level of the workforce, firming up revenues and moderating other areas of expenditures. 

"Since 2010, the city has gone through a lot of pain but has worked diligently to right the ship," Roach said. "I am pleased that these efforts have been recognized by Moody's and would like to acknowledge my council colleagues for their steadfastness as well as the city's finance and budget team. This continues to be an ongoing process for us and we will continue to work together to improve the City's financial position while providing the high level of service that our residents have come to expect and that makes White Plains a great place to live, work and visit."

Here's what Moody's said about White Plains in its update issued on Friday:

Moody's has revised the outlook to stable from negative.

SUMMARY RATINGS RATIONALE

The Aa1 rating incorporates the city's large, diverse, and affluent tax base, and average debt burden. The revision of the outlook to stable reflects the city's demonstrated ability to restore reserve levels, movement towards a trend of structural balance, and the elimination of non-capital BAN issuance.

STRENGTHS:

Regional commercial and business center in a highly affluent county

A recently established trend of structural balance

Demonstrated ability to eliminate reliance on BAN (bond anticipation note) borrowing to fund tax certiorari payments

 CHALLENGES:

Ongoing value decline

Addressing ongoing spending pressures while facing tax levy cap.

Addressing volatility in economically sensitive revenues

WHAT COULD MAKE THE RATING GO UP:

-Augmentation of reserves to healthier levels.

- Stabilization and growth in the city's tax base and socio-economic profile.

WHAT COULD MAKE THE RATING GO DOWN:

-Failure to demonstrate continued progress towards restoring reserves to historically healthier levels.

-Failure to adhere to the plan to eliminate the use of non-capital BANs .

The principal methodology used in this rating was General Obligation Bonds Issued by US Local Governments published in April 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.