MOODY'S UPGRADES TOWNSHIP OF WHITE'S (NJ) G.O. RATING TO A3 FROM Baa1

Posted on: December 23, 2009, 10:36 am

NEW YORK, Dec 23, 2009 -- Moody's Investors Service has upgraded the Township of White's (NJ) long-term rating to A3 from Baa1 affecting $2.1 million in outstanding general obligation debt. The upgrade reflects the maintenance of strong financial margins evident in a fiscal 2008 Current Fund balance ending at an ample 98.7% of Current Fund revenues, and the expectation that the township's modestly-sized $787 million tax base, located in Warren County (GO rated A2), will likely remain stable due to slow down of new development in light of current economic environment, and given that a large potion of the township is located in the protected and development-restricted Highlands region. The township's tax base is dominated by DSM Nutrition Food, which represents 7.6% of 2009 assessed value. After a reassessment, the township's assessed value decreased by 9.7% in 2009 to $570 million due primarily to a successful tax appeal by DSM Nutrition Food, its largest tax payer. While not immune to the national housing downturn, the region has fared relatively well with housing values reportedly projected to remain stable. The A3 rating also incorporates township residents' average socioeconomic profile for the rating level and low debt burden (0.3% direct in fiscal 2008), which is expected to remain below average despite the issuance of $3.6 million of Bond Anticipation Notes in 2009 to finance a tax overpayment refund. This issuance would increase direct debt burden to a still below average 0.7% of 2008 equalized value. All of the township's debt is fixed rate and the township is not party to any derivative agreements...

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