MOODY'S CONFIRMS THE Baa1 RATING ON KENILWORTH FIRE DISTRICT 2 (NY) AND REMOVES THE WATCHLIST AND OUTLOOK

Posted on: December 23, 2009, 5:26 pm

NEW YORK, Dec 23, 2009 -- Moody's Investors Service has confirmed the Baa1 rating on Kenilworth Fire District 2 (NY). Concurrently, Moody's has taken the district off watchlist - status uncertain and removed the rating under review outlook. The bonds are secured by the district's unlimited tax pledge. The Baa1 rating reflects the district's small, residential tax base, narrow but adequate financial position and low debt position (0.5%) that's expected to remain minimal given the absence of any debt plans over the medium term. The fire district's small $336 million tax base, located within the Town of Tonawanda (G.O. rated A1), is largely residential and is expected to remain stable with no near-term development anticipated. The tax base did not experience significant appreciation during the recent period of economic expansion; accordingly, taxable values have reportedly not been significantly impacted by the current economic downturn. The town's wealth levels are slightly below regional medians and full value per capita is a modest $37,333...

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