MOODYS AFFIRMS A2 RATING ON THE TOWN OF GENESEO'S (NY) G.O. BONDS; REMOVES NEGATIVE OUTLOOK

Posted on: December 18, 2009, 2:56 pm

NEW YORK, Dec 18, 2009 -- Moody's Investors Service has affirmed the Town of Geneseo's (NY) A2 rating and removed the negative outlook on $1.3 million of outstanding general obligation debt. The bonds are secured by the town's unlimited property tax pledge. The A2 rating also factors the expectation that the town's limited $432 million tax base, located in Livingston County (GO rating A1/no outlook), which benefits from the institutional presence of State University of New York (SUNY) Geneseo is expected to remain stable. While median family income is well above state and national medians, per capita income is well below at 65.4% of the state, reflecting the large student population. The removal of the negative outlook reflects the town's ability to maintain healthy reserves coupled with structurally balanced financial operations. The rating additionally factors the town's below-average debt burden (0.3% of full value) which is expected to increase given future debt plans. Further, the town has a rapid amortization of principal (100% retired within 10 years). All of the town's debt is fixed rate and the town is not party to any derivative agreements...

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