Mayor Mark A. Smith announced that Moody’s Investors Service has upgraded the City of Bayonne’s bond rating from Baa1 with negative outlook to Baa1 with stable outlook.  Smith said, “This upgrade is very good news.  It shows that Bayonne has made significant financial progress during my Administration.  Moody’s has raised Bayonne’s rating for the first time in more than five years. Our hard work and fiscal discipline are paying off. We have turned a corner and are moving in the right direction.”

            Moody’s cited several factors in its decision to improve Bayonne’s rating: 1) The agency recognized that the Bayonne Municipal Utilities Authority’s (MUA) joint venture with United Water and Kohlberg Kravis Roberts (KKR) removed $120 million from the local debt burden. The transaction paid off all the MUA’s debt and a portion of the debt of the Bayonne Local Redevelopment Agency. 2) Moody’s noted that the City no longer has any deferred charges.  All charges deferred in the past have been paid off. 3) The City of Bayonne has a declining reliance on tax anticipation notes (TANS) to cover its cashflow needs.  4) Bayonne has a large tax base.  5) Bayonne has declining debt.  6) Bayonne has new revenues from payments in lieu of taxes (PILOTS) coming from newly developed properties. Continue reading River View Observer Financial Views-Declining Debt, New Tax Revenues Lead to Moody’s Upgrade of Bayonne’s Bond Rating →