City of Poughkeepsie gets first positive outlook from credit agencies in over a decade

The city of Poughkeepsie announced Friday it has received its first positive outlook from credit rating agencies in more than a decade.

According to the city, Standard & Poor's Global and Moody's credit rating agencies released their determinations on Wednesday.

S & P Global said the city had reached "investment grade" status for the first time since 2016.

Mayor Marc Nelson said in a news release that better credit ratings can significantly reduce the cost of borrowing by recognizing lower financial risks to investors through low-interest rates.

"This is a momentous announcement because it impacts, one way or another, nearly every resident, business and property owner in the city," Nelson said.

Nelson said regaining the city's investment grade quality bond rating had been a chief objective of state Senator Rob Rolison, a former Poughkeepsie mayor. He said that goal has now been achieved due to the hard work of the city's Finance Department, led by Commissioner Brian Martinez, and the support of all other city departments.

S & P rated the city "BBB," which assigns it an "investment grade" rating, while Moody's rated the city "Ba1," their highest rating just below investment grade.

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S & P's ratings analysis credited the city with taking a variety of fiscally related actions over the past seven years, including reducing the general fund deficit from $16 million in 2016 to $6.8 million in 2021; consolidating transportation operations with Dutchess County in 2017; increasing revenues as part of its strategy to turn around negative fund balances; negotiating a new sales tax agreement with Dutchess County in 2022; and "building a well-seasoned management team with a continued focus on strengthening existing policies."

"Receiving an 'investment' grade rating from a major credit agency after so many years demonstrates the team's long-term commitment to strategically improve the city's finances," Martinez said in a statement.

"I know firsthand how difficult it is to allocate scarce resources within a city where needs are so great," added Common Council Chairwoman Natasha Brown. "I want to thank my colleagues on the council and and particularly those who have made it a priority to work collaboratively with the administration over the years."

S & P Global and Moody's agreed that stressors that remain as fixed costs and are expected to grow, such as pensions and other benefits, and negative fund balances, must be addressed to continue to raise the city's credit rating.

Mike Randall covers breaking news for the Times Herald-Record, Poughkeepsie Journal and The Journal News/lohud. Reach him at mrandall@th-record.com or on Twitter @mikerandall845.

This article originally appeared on Poughkeepsie Journal: Credit agencies see city of Poughkeepsie in positive light