The Town of Islip’s bonds are stable, according to major ratings service Fitch Ratings.
In a statement issued today, Fitch said the town’s $16.6 million in public improvement bonds will price competitively on July 24 and will mature at a solid rate, therefore Fitch placed a AA+ on the bonds.
Fitch also reaffirmed a AA+ rating on the town’s nearly $118 million in general obligation bonds.
The service touted Islip’s health care and workers compensation reserves as well as the town’s solid growth in property value.
From the statement:
The ‘AA+’ rating is based on the town’s consistently strong and stable financial performance leading to ample reserve and liquidity levels in all of its major operating funds. Although the town’s financial position has been bolstered by above-budget mortgage tax receipts since the beginning of the decade, the town has prudently established dedicated reserves for health care, workers compensation and other future costs with a portion of these revenues. Additional credit strength is derived from the town’s diversifying economic base, manageable capital needs and low debt burden. The rating also considers the above-average debt carrying costs on the budget, which is offset by the use of passenger facility charges to fund airport debt and a very rapid debt amortization rate, as well as the town’s slow tax base growth, which may improve over time with the town’s aggressive economic development efforts.
