MOODY'S DOWNGRADES TO A1 FROM Aa3 NASSAU COUNTY'S (NY) LONG-TERM GENERAL OBLIGATION RATING AND DOWNGRADES TO MIG 2 FROM MIG 1 NASSAU COUNTY'S (NY) REVENUE ANTICIPATION NOTES; OUTLOOK REMAINS NEGATIVE

Posted on: November 4, 2010, 6:43 pm

NEW YORK, Nov 4, 2010 -- Moody's Investors Service has downgraded to A1 from Aa3 the long-term general obligation rating of Nassau County (NY), affecting approximately $1.2 billion of outstanding debt; and downgraded to MIG 2 from MIG 1 the short-term rating on $130 million Revenue Anticipation Notes, 2010 Series A (dated June 15, 2010, due March 15, 2011) and $80 million Revenue Anticipation Notes, 2010 Series B (dated June 15, 2010, due April 15, 2011). In addition, Moody's has assigned an A1 rating with negative outlook to Nassau County's (NY) $50 million General Improvement Bonds, 2010 Series E, $76 million General Improvement Bonds, 2010 Series F (Federally Taxable - Build America Bonds). The county is also remarketing the 2007 Series A and B multi-modal bonds to convert them into fixed rate bonds; following the conversion the 2007 Series A and B will only carry the county's long-term underlying rating. The outlook remains negative. Both the notes and the bonds are general obligations of the county secured by an unlimited property tax pledge. The 2010 Series E bond proceeds will be used to fund tax certiorari payments. The 2010 Series F bond proceeds will be used for various capital improvement projects...

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