MOODY'S ASSIGNS MIG 1 AND Aa2 RATINGS TO TOWN OF CHEEKTOWAGA'S (NY) $8.3 MILLION G.O. BOND ANTICIPATION NOTES AND $4.7 MILLION G.O. REFUNDING BONDS OF 2010, RESPECTIVELY

Posted on: June 23, 2010, 5:22 pm

NEW YORK, Jun 23, 2010 -- Moody's Investors Service has assigned a MIG 1 rating to the Town of Cheektowaga's (NY) $8.3 million Bond Anticipation Notes (dated July 21, 2010 and payable July 21, 2011) and a Aa2 rating to the town's $4.69 million General Obligation Refunding Bonds of 2010. Concurrently, Moody's has affirmed the town's long-term rating of Aa2, affecting approximately $13.4 million of outstanding fixed-rate general obligation bonds. The notes and bonds are secured by the town's general obligation, unlimited property tax pledge. The MIG 1 rating incorporates the town's demonstrated history of access to capital markets as well as its above average long-term credit characteristics. The Aa2 rating reflects the town's stable financial position characterized by sound reserve levels, a large and diverse tax base, and a low debt burden. Note proceeds will finance various building and capital improvements, including a new police and court building; bond proceeds are expected to refund Series 1997, 1999, and 2001 Bonds for an expected net present value of $230,000, or 5.1% of refunded principal, without extension of the overall maturity structure...

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