Moody’s: Long Beach Finances Remains ‘Stable’

City holds its bond rating with agency.

Long Beach City Hall. (Credit: Joseph Kellard)
Long Beach City Hall. (Credit: Joseph Kellard)

Moody’s Investors Service reaffirmed the City of Long Beach’s bond rating and “stable” financial outlook, according to a statement the Manhattan-based ratings agency released Tuesday.

“The stable outlook reflects improved fiscal controls and policies implemented by a new management team beginning January 2012,” Moody’s said in the Dec. 3 statement. “As a result of these new policies, management has improved budgeting practices which led to the declines in recent years.”

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In late 2011, when the city announced what would turn out to be a $10 million deficit, Moody’s downgraded the city’s finances to a Baa3 rating, which is one step above junk-bond status. After a new administration instituted new financial measures and controls in 2012 and 2013, Moody’s in August affirmed the city’s outlook from “negative” to “stable.” Days later the City Council voted to remove a “fiscal crisis” designation the municipality declared in February 2012.

Moody’s on Tuesday cited among the actions Long Beach could take to improve its rating a “continued ability to access the capital markets for additional cash flow note,” while the municipality could bring its rating down, in part, through “prolonged or more severe effects on revenues or tax base loss from Hurricane Sandy beyond what is currently anticipated,” the agency noted.

Noway Jose December 06, 2013 at 11:36 AM
The City can't compete with the School District which has a Aa2 rating and upwards of $50 mil in its mattresses.
Penquin December 06, 2013 at 04:50 PM
Hi Jose - I can't get over all the fuss about 2.5% raises for school personnel, yet the city is considering taking a 6.5MM bond to pay for 22% raises for the cops. What BS!
LB TAXPAYA December 06, 2013 at 07:09 PM
Yeah I got a bridge for sale too. Only 3 dollars and its very stable just like the Lb finances.
Eddie December 06, 2013 at 08:05 PM
The new policies are a 13% increase in spending followed by annual 16% tax increases. That's awesome! Way to go, Democrats!
Howie December 06, 2013 at 11:32 PM
It's the end of the year. Time to make sure all monies are spent from the school budget regardless of need.
Jack December 07, 2013 at 07:50 PM
It might be time to start thinking about consolidation or contracting out the Police with nassau County.
jv December 07, 2013 at 08:02 PM
The crooks running it would murder to keep that from happening.
Penquin December 07, 2013 at 08:12 PM
I think this whole city should be consolidated into Nassau County. We are economically past the point where an extra layer of government and services is feasible. It would be interesting to hear your point of view - the pros and cons of each. Many of you know much more about politics than I do. So thanks!
marco saltamacchia December 09, 2013 at 12:04 PM
so after almost four years of blaming the prior group of bums, this group still cant get a bond upgrade? why is that? other towns got hit by sandy. they aren't at junk bond ratings. maybe a lot of borrowing? maybe zapsen and his elf sidekick cant stop funneling money out ? where are all the grants from retard expert Torres? or does he only help latino organizations that reward him? watch as this slides into the badlands


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